Panguitch sits at 6,600 feet in elevation in the southwest corner of a broad valley rimmed by mountains. Grassy meadows and fields cover the valley floor, with the Sevier River flowing through the middle. Forests of juniper trees cover the lower slopes and aspens and evergreens can be seen further up. With Bryce Canyon National Park located not far to the east, rock formation reminiscent of the park can be seen along the eastern mountains. Panguitch can be seen from a distance because of the many trees planted by the pioneers.
Panguitch was settled by 54 Mormon pioneer families who arrived in March of 1964. In 1866 the town was abandoned because of the Black Hawk Indian War. Settlers returned in 1871, finding the previous settlement untouched and crops growing in the fields. On March 9, 1882 Panguitch became the county seat of the newly created Panguitch County. As of the 2000 census, the population of Panguitch stood at 1,623. In 1940 it had been as high as 2,500, but with the new economy, Panguitch, like other rural areas, has seen a drift of it's population toward the cities.
U. S. Highway 89 enters Panguitch from the north, makes a turn in the center of town, leaving toward the east. Toward the north it follows the Sevier River for a long distance through a few small towns, and then comes to Interstate 70. A short distance west of Panguitch it rounds a point of the mountains and turns south, also following the Sevier River. Utah Route 143 leaves southward from Panguitch into the mountains to Panguitch Lake and other beautiful recreational areas.