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The town is situated at the back of a north facing bay known as Fishguard Bay (Welsh: Bae Abergwaun) which offers protection from waves generated by prevailing westerly winds. It has a relatively mild climate due to its coastal position. The winds coming from the west or south-west have a determining influence on temperature and precipitation.
Wildlife around Fishguard is rich in flora and fauna: it shows a wide variety of colourful wild flowers and sea mammals including the grey seal, and even porpoises and dolphins. The local birdlife include Eurasian Curlew, Common Redshank and Sanderling regularly foraging in the lower fishguard harbour and European Stonechat, Great Cormorant and Northern Fulmar can be seen from the coastal path.
Fishguard has a population of 3,419 recorded in the 2011 Census. The community of Fishguard and Goodwick had a population of 5,043 recorded in the 2001 Census and 4,869 in the 2011 Census.
The actual town of Fishguard is divided into two parts, the main town of Fishguard and Lower Fishguard. Lower Fishguard (locally known as 'Lower Town') is believed to be the site of the original hamlet from which Fishguard, as seen today, has grown. It is situated where the River Gwaun meets the sea in a deep valley, hence the Welsh name for Fishguard. It is a typical fishing village with a short tidal quay. The settlement stretches along the north slope of the valley.
The main town contains the parish church, the High Street and most of the modern development, and lies upon the hill to the south of Lower Fishguard, to which it is joined by a steep and winding hill. The western part of the town, facing Goodwick, grew up in the first decade of the 20th century with the development of the harbour.
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