Ponza and Gavi are the remains of a caldera rim of an extinct volcano, with a surface area of 7.3 square kilometres (2.8 square miles). Ponza is approximately 5.5 mi (8.9 km) long by 1.5 mi (2.4 km) at its widest. It is a crescent shaped island with one large beach called Spiaggia di Chiaia di Luna (Half Moon Beach) and a few small beaches and has a mostly rocky coast made of kaolin and tuff rock. The island has layers of Kaolinite and Bentonite which used to be mined. It has many odd natural rock formations, one looks like a monk, another looks like a giant pair of work pants, Spaccapurpo (Arco Naturale O Spaccapolpi), another looks like a patch of flowers and another one looks like mushrooms, another looks like a horseman. It has the Fantasy Rock Castle and several natural bridges and arches. It also has Faragliones or giant sea stacks made of solid rock. It has several small villages, among them are Commune di Ponza, Santa Maria and Le Forna. Ponza is often confused with nearby islands like Ischia and Capri, except Ponza has no active volcanism.

The town of Ponza is a fishing and boating port with several large docks that can accommodate large ships. Its biggest industry is tourism followed by boatbuilding, boat repair and fishing.

The four mines at the northern end - the most beautiful area of the island - were closed down in 1975 by the Italian Environmental Protection Agency because the mining operation was destroying the wildlife and flora, which are Endangered species. The mines produced kaolin and Bentonite. Kaolin is used in making Kaolin-Pectin medicine and the manufacture of porcelain.

Ponza has a two lane road that goes from north to south, but can accommodate small cars only. An airstrip planned for the north of the island was canceled due to environmental concerns. Because there is no airstrip, seaplanes visit the island instead.

Celebrities who have vacationed on Ponza include Kirk Douglas, his son Michael Douglas, Anthony Quinn, Burt Lancaster, Gina Lollobrigida, Elsa Martinelli and Sophia Loren, Jacques Cousteau and his son, Philippe Cousteau, who filmed several documentaries in the area.

Federico Fellini's Satyricon (1969) was filmed on Ponza. Some scenes in Wes Anderson's film The Life Aquatic were filmed on the island; Ponza was instead called in the movie, "Port-au-Patois".

The Rai Fiction television series, "Un'altra Vita" (2014), was largely filmed on Ponza. Many of the scenes showcase the hilly landscape and rugged shoreline of the island.

Most of the people who live there raise rabbits and chickens and other animals in coops for meat to make cacciatore. Other farmed animals include goats, lamb and pigeons.

Many of the original inhabitants of Ponza are now leaving the island. They are steadily being replaced by other Italians from the mainland. Many local children simply move away after becoming adults and never return.

The local economy is in a downturn partly due to the severe restrictions on commercial fishing.