Penybont (also sometimes spelled Pen-y-Bont) is a small village in Powys, Wales.
It is located to the east of Crossgates, and to the north-east of Llandrindod Wells. The A44 runs east-west through the village, and the A488, which starts in Penybont, runs north to Knighton and Shrewsbury. Crossgates lies within a large loop of the River Ithon, a major tributary of the River Wye.
The village is served by Pen-y-Bont railway station on the Heart of Wales Line.
It is also famous for its popular garden centre, Midway Nurseries, and an eighteenth-century coaching inn called the Severn Arms. The village also has a restored shop/museum/gallery called Thomas's Shop where there is a wool and weaving exhibition and workshop. The village hall hosts many activities and Penybont Football Club plays its matches on the race course ground. Horse racing takes place here in the month of August. Until very recently Penybont market was a major centre for sheep and cattle sales.