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Pencoed is a town located in Mid Glamorgan, Wales. In Welsh, the correct spelling is Pen-coed. Often, in English, spellings now superseded in the Welsh language are used as the official name. Thus "Pencoed", without a hyphen, is usually used in English, but is considered misleading in Welsh as it suggests that "pen" bears the stress rather than "coed". The spelling "Pencoed", when used in Welsh, is considered to be, strictly speaking, incorrect.

The town consists of three distinct areas, which were once four small hamlets. To the north is Penprysg ("copse end"), which lies at the end of the low ridge (100 m) of Cefn Hirgoed ("long wood ridge"). To the west is Hendre ("lowland winter homestead", literally "old settlement") which rises gently from the railway line in the centre of the town towards the common land at Ystadwaun, on older maps as Ystad y Waun and Gwastadwaun ("level moor").

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