Prince Edward Island lies in a portion of the Gulf of St. Lawrence Plain, which is a subdivision of the Appalachian Region, the physiographic province that dominates eastern North America. Structurally, the Gulf of St. Lawrence Plain is a low basin that blankets all of the island.

Red sandstones with a limey content underlie all of Prince Edward Island to a great depth. The surface, much of it less than 60 m (200 ft) in elevation, is gently undulating. The highest point on the island, in the Bonshaw Hills, rises to 142 m (466 ft) above sea level. The northern side of the island has fine white beaches and is protected from the sea by dunes. The southern side is bordered by low bluffs, averaging about 6 m (20 ft) high, made of red sandstone.

Long ago, Prince Edward Island was covered by a glacier, which left a deep mantle of sandy-red glacial debris. The soils that developed on this mantle are extremely moist, and soluble and valuable salts have been removed by the moisture. The soils are acidic and comparatively low in plant nutrients. However, over large sections where they have been cared for and where humus content has been added, the soils have proved excellent for agriculture.

Prince Edward Island is a popular vacation resort, known for the rustic charm of its quiet villages, its white sandy beaches bathed by the warm waters of the Gulf of St. Lawrence, and its excellent opportunities for trout fishing, deep-sea and tuna fishing, and other sports. Visitors drawn by these attractions and by the Charlottetown Summer Festival have made tourism one of the island’s leading sources of income despite the relatively short summer tourist season. Improved roads, increased ferry service, and the expansion of recreational facilities have also stimulated tourism.

Prince Edward Island National Park, skirting the northern shore, attracts golfers to one of the finest courses in Canada. A fairway passes the National Historic Site commemorating Lucy Maud Montgomery, author of the classic Anne of Green Gables (1908) and other books set on the island. Charlottetown is a center for horse racing.