Kenmare is a small town located at the head of Kenmare Bay (An Ribhéar) where the Roughty River (An Ruachtach) flows into the sea, and at the junction of the Iveragh Peninsula and the Beara Peninsula. The bay is more commolly called the Kenmare River, from which its modern Irish name An Ribhéar comes, and is known by its traditional Irish name as Inbhear Scéine in historical literature and mythology. It lies on two of the more famous Irish tourist attractions, the Ring of Kerry and the Ring of Beara, approximately 32 kilometres (20 miles) from Killarney.

The entire area was granted to the English scientist, Sir William Petty, by Oliver Cromwell as part payment for completing the mapping of Ireland, the Down Survey in 1656. He laid out the modern town circa 1670.

The three main streets that form a triangle in the centre of the town are called Main Street (originally William Street, after Sir William), Henry Street (after the son of William) and Shelbourne Street (Henry Petty became the first Earl of Shelburne). This name was also later applied to Shelbourne, Dublin. However, the area has more ancient roots. There is one of the biggest stone circles in Ireland very close to the town, showing occupation by Celtic peoples long before English occupation. Vikings are said to have raided the area around the town which at that time was called Ceann Mhara.

The convent in the town, the Poor Clare Sisters, was founded in 1861 by Sister Mary Frances Cusack, who was also an author and publisher of many books. The convent eastablished a lace-working industry and Kenmare Lace became noted worldwide. The town is noted for receiving Ireland's tidiest town award in 2000. The Catholic Church in the town contains stained glass from Franz Mayer & Co.