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Lichau Creek flows southward through the town, paralleling the railway. The creek feeds into the Petaluma River , which flows to San Pablo Bay .
Due to the Sonoma Mountain 's ancient volcanism, Penngrove is rich with obsidian and petrified wood . Its soil is unique, composed mainly of clay-like adobe , which has been used for centuries as building material. A prime example of adobe architecture is the Rancho Petaluma Adobe , a State Historic Park in nearby Petaluma.
Penngrove enjoys a mild Mediterranean climate.
According to the United States Census Bureau , the CDP covers an area of 4.0 square miles (10.4 km²), all of it land.