It was designed and built by Sir Clough Williams-Ellis between 1925 and 1975 in the style of anItalian village, and is now owned by a charitable trust.

The village is located in the community of Penrhyndeudraeth, on the estuary of the River Dwyryd, 2 miles (3.2 km) south east of Porthmadog, and 1 mile (1.6 km) from the railway station at Minffordd, which is served by both the narrow gauge Ffestiniog Railway and Arriva Trains Wales (Cambrian Line).

Portmeirion has served as the location for numerous films and television shows, and was "The Village" in the 1960s television show The Prisoner.