When first discovered by Captain Francis Light in 1786, the island was filled with lush vegetation, especially the betel nut palm, and this gave rise to the island's name Pulau Pinang (Island of the Betel Nut). The Sultan of Kedah ceded this land to the British East India Company in 1786 at the behest of Captain Light.

Since its establishment as the first British trading outpost in the Far East, Penang is today a bustling metropolitan city with a unique blend of East and West. Besides exhibiting a colonial past, Penang reflects a potpourri of Malay, Chinese, Indian and Nyonya cultures. This is evident in much of the island's historical and cultural landmarks. Penang though owes much of its fame to its beaches and clear blue seas. The state's cultural festivities, numerous parks and Penang Hill (Bukit Bendera) are also popular attractions for visitors.