Penally (Penalun) is a village near Tenby in Pembrokeshire, West Wales. Penally is well known for Penally Abbey, a Gothic-style country house now used as holiday accommodation.

The village is served by Penally railway station.

The village is small but has three pubs: The Cross, The Crown and The Paddock, a night club and a small post office. The local parish church is dedicated to St Nicholas & St Teilo. It was originally just called St Nicholas but was changed to St Nicholas & St Teilo at the end of the 19th century as it is suggested that Penally was the birthplace of St Teilo, a Christian leader in the 6th century. The church has two Celtic crosses in St Teilo's Chapel. They were originally in the graveyard but were restored and moved into the chapel.

Tenby Golf Course runs alongside Tenby South Beach in front of the village. Public footpaths go through the course to allow people to walk to the beach and to the nearby town of Tenby. The start of the course is in Tenby.

A firing range owned by the Ministry of Defence is located between the village and the beach. It was built in the middle of the 19th century and used to train soldiers during World War II. When the firing range is being used red flags are flown and there are sometimes officers stationed at huts along the perimeter line. Some of the area's public footpaths are restricted when the firing range is in use. The firing range has its own byelaws which are on signs around the firing range perimeter and must be obeyed.

Penally is home to Hoyles Mouth Cave where some paleolithic people lived.

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