Penola is a town in the Australian state of South Australia located about 388 kilometres (241 mi) southeast of the state capital of Adelaide in the wine growing area known as the Coonawarra. At the 2021 Australian Census, the town of Penola had a population of 1,376.

The Coonawarra wine region is a wine region centred on the town of Coonawarra in the Limestone Coast zone of South Australia. It is known for the Cabernet Sauvignon wines produced on its "terra rossa" soil. The name has been said to have originated in Bindjali, an Aboriginal language, meaning "wild honeysuckle". It is about 380 kilometres (240 mi) south-east of Adelaide, close to the border with Victoria.