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Peggy's Cove is one of the busiest tourist attractions in Nova Scotia and is a prime attraction on the Lighthouse Trail scenic drive. The community's famous lighthouse marks the eastern entrance of St. Margaret's Bay and is officially known as the Peggy's Point Lighthouse.

Peggy's Cove has a classic red-and-white lighthouse still operated by the Canadian Coast Guard. The light station is situated on an extensive granite outcrop at Peggys Point, immediately south of the village and its cove. This lighthouse is one of the most-photographed structures in Atlantic Canada and one of the most recognizable lighthouses in the world.

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