Home of the Big Penguin, Penguin was named after the nearby colonies of little (fairy) penguins. Evening tours to see the penguins returning from their day at sea can be booked. The summer breeding months (November to March) are the best time to see them.
Hiscutt Park has a Dutch theme, with a working windmill and tulips in spring. The shy platypus may be seen on the lake.
The Dial Range lies behind the town, where there are bushwalks and horse riding trails. Two of the best places are Ferndene Gorge and Mt. Montgomery State Reserves.