Kensington is located on the North Western side of Prince Edward Island in Prince County. Older names for Kensington included Five Lanes End, because roads from five separate communities all met at what was Kensington and the other name was Barrett's Cross in 1824, after businessman who opened up an inn in Kensington. The name Kensington came to the town in 1862, in honour of Kensington Palace in London.

Kensington officially became a town with Prince Edward Islands Railway made its way through the community in the 1800s; on its way from Summerside to Charlottetown. Like many other Prince Edward Island towns, Kensington is surrounded by rural farms and acts as a service centre for the population of all the farms.

Kensington houses some very entertaining attractions like the Fantazmagoric Museum of the Strange and Unusual, an educational trip with a full size reconstruction of King Tut's Tomb and a big Titanic exhibit. There is also the Great Island Science and Adventure Park, with kayaking, mini golf, and a full size Space Shuttle replica. The Haunted Mansion is another great stop with creepy old cellars and secret gardens with streams and waterfalls. For more historical attractions Kensington has the Kensington Train Station, built in 1905, and there is the Veterans Memorial Military Museum. Kensington is 48 km (30 mi.) northwest of Charlottetown.

Kensington accommodations include bed and breakfasts, hotels, campgrounds, and cottages.