Penycae is a village and community in the county borough of Wrexham in north-east Wales.

History
The village was part of the ancient parish of Ruabon and the district was known as Dynhinlle Uchaf (but also known as Y Dref Fechan or Cristionydd Fechan).

The new parish of Penycae was formed 1879, from parts of the existing parishes of Ruabon, Rhosllannerchrugog and Rhosymedre. The parish church of St. Thomas had been consecrated in 1878. However, most of the population of the parish were nonconformists and attended the Baptist chapels of Salem and Sion in Groes; the Calvinistic Methodist chapels in Groes and Tainant; the Wesleyan chapel of Soar in Stryt Issa; or the Primitive Methodist chapel in Copperas.

Industry
Coal was extracted from pits at Plas Bennion, Wynn Hall, Afon Eitha, Cristionydd, Groes and Plas Isaf. Zinc was worked at Copperas.

Dee Valley Water operates two reservoirs in Penycae: Penycae Upper and Penycae Lower.

Transport
Wright & Son, ran a bus service from Penycae to Wrexham via Rhos, and later via Ponciau also. When the bus industry was de-regulated in 1986 there was fierce competition between Wright's and the much larger Crosville company. Wrights', the last surviving independent local company, ceased operations in 1993 leaving Crosville as the sole service provider in the Wrexham area.