The village is located at the foot of a sandy peninsula called the Maharees separating Brandon Bay to the west from Tralee Bay on the east. Off the peninsula are a number small islands, called the Seven Hoggs, or the Maharee Islands. A small fishing harbour is located at Fahamore on Scraggane Bay, about 5 km outside the village at the tip of the Maharees peninsula. The village is surrounded by the mountains of the Dingle peninsula and overlooked directly by Beenoskee and Stradbally Mountains. To the west is Brandon Mountain. Castlegregory is also the name of a Roman Catholic parish which includes parts the north east area of the Dingle Peninsula, and is served by two churches. The village is a tourist destination and it is near to a number of beaches located on the Maharees peninsula. Castlegregory Golf and Fishing club, a nine-hole links golf course, is located to the west of the village on the shores of Lough Gill.