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15 BEST restaurants in Penang: hawker stalls to fine dining

15 BEST restaurants in Penang: hawker stalls to fine dining

Whenever people talk about Penang, it doesn’t take long for the conversation to move onto food and recommendations for the island’s best restaurants. Whether that’s locals gently arguing over where to find the best char kway teow, or travellers trading tips on the cheapest roti canai vendor, food and Penang are inseparable.

Many places around the world might stake a claim as being a food capital or foodie heaven, but few have the diversity, quality and flavour to compete with Penang. While a visit here is much more than the food, it’s often the cuisine, restaurants and hawker stalls that people remember the most.

The focus might be on Malay, Chinese and Indian food, but every budget, cuisine and preference is catered for, and the choice of restaurants, cafes, stalls and street vendors can seem endless. It was a tough task but we’ve sampled as many places as our stomachs would allow to bring you a list of what we consider to be the best places to eat in Penang. You’ll notice that some of our recommendations are in different parts of Penang Island, but the highest concentration of places are found on the historic streets of George Town.

What this list isn’t and what it is

This isn’t intended to be the definitive list of the best places to eat in Penang, nor are we offering an in-depth inventory of every type and variation of dish available on the island. Food is such an integral part of the Penang psyche, passed through the generations: we know better than to arrive here and immediately claim to know it all. Everyone in Penang has their favourite restaurant and their favourite dish, usually cooked just how their (grand)parents used to make it.

The places we recommend might not always pass the authenticity test and we’re certain to have missed out a tiny food cart or hole-in-the-wall serving the best pau on the island (but once we find it, we’ll be sure to add to the list).

Instead, this is a list of the places we’ve most enjoyed eating at since we arrived in Penang. Some of them are excellent and tasty examples of the local cuisine, some are great for a quick snack, there are a couple of upmarket places, and others that might provide the comfort food you’re missing from home.

Hopefully we’ve captured something of what makes the food scene in Penang so famous, and we’ll certainly enjoy expanding our horizons (and waistlines), trying new food, and adding to this list.

1. Eastern & Oriental

The iconic building along the George Town waterfront, the E&O Hotel was the grandest place to dine and stay back in the earliest days of the city, and it’s still a sumptuous location to enjoy a meal in ornate surroundings.

The restaurants in the hotel are all open to non-residents and, although they have the strictest dress code and highest prices of our recommendations here, they make for a memorable dining experience. For lunch, the Palm Court restaurant is a relaxed venue, serving Malaysian, Chinese, Indian and Western dishes. If you fancy a drink afterwards overlooking the sea, there is a terrace outside the restaurant, otherwise head over the Farquhar’s Bar, one of the best bars in Penang, for a cocktail amongst oak panels and portraits of Penang’s past.

2. Fu Er Dai

George Town dim sum

Just around the corner from the E&O but a world apart in price and outlook, Fu Er Dai is the best place in George Town for Chinese dim sum. This is a busy and popular destination for locals and tourists alike, with a huge range of dim sum on offer and a bustling atmosphere at peak periods.

Grab a tray and join the queue of people choosing their dishes before heading back to the plastic tables and seeing exactly what you just picked. Part of the fun is experimenting with something new or exotic, the affordable prices mean this is a good place to find your new favourite dim sum. The large car park next to the cemetery is staffed enthusiastic people who are used to a busy crowd.

3. Nero Nero

Penang is best known for its Asian cuisine so most people focus their attention on Malay, Chinese or Indian dishes during their visit. If you’re taste buds are in the mood for a change of pace, and you need a quieter dining experience than a food court, Nero Nero makes a great option.

Specialising in Italian food, the modern and classy restaurant is located just across from the Padang in George Town and is staffed by friendly and polite waiters. This is also one of the best places in Penang for fine wine, with an extensive and well chosen list on offer. It’s not the cheapest place in George Town but it’s arguably the best for pizza, pasta and excellent service.

4. Gem

We love Gem. Everyone we meet who asks for a restaurant recommendation gets Gem as their first answer. Located on Bishop Street in a quieter part of George Town, this North Indian restaurant has a wide selection of dishes, with the Kadai Paneer a particular favourite of ours. The naan is excellent too but make sure you save some space for the tasty desserts.

The waiters and owner are kind and friendly, and are always happy to recommend dishes. They also have Tiger beer on tap!

5. Gravy Baby

Gravy Baby might be a chain restaurant, with branches across Malaysia, but they really do know how to make consistently excellent food in fun surroundings. The Sunday roast dinner is the best we’ve tasted outside the UK and they also do an excellent range of brunch items, including eggs benedict and English breakfasts. It’s one of those places where the menu is several inches thick and needs several minutes to peruse. Take your time and order a beer while you think.

They have a branch in George Town on Chulia Street but it can get loud next to the busy road. Instead, we’d suggest heading for the one at Gurney Paragon Mall and take one of the tables outside under the fans. If you’re here with kids (or playful adults), try out the pool table, table football and basketball games.

6. Frandy Beach Bar & Restaurant

Penang doesn’t have quite as many beach bars as some other tropical islands but the ones it does have are always worth a visit. Hidden away in the northwest corner of the island in between Batu Ferringhi and Penang National Park, Frandy Beach Bar and Restaurant has a whole chilled-out Southeast Asian vibe going on.

Choose from the bean bags on the beach or wooden tables and chairs inside, Frandy’s has an equally extensive food and drink menu, with particularly well-priced char kway teow a good option. The beer buckets are decent value and extremely tempting as the sun begins to set and the rock music play from the sound system. If you’re looking for a relaxed place to lose a few hours, this is the one to choose.

Frandy’s also features on our best bars in Penang.

7. La Chica Mexican Grill

Straits Quay is a popular place for visitors to Penang, with its bars, restaurants and marina offering a taste of the Mediterranean in the tropics. There are plenty of Western style restaurants to choose from but we especially like La Chica Mexican Grill for its tacos, fajitas, nachos and happy-hour beers.

You’ll be playing international prices for the experience but, out of all the restaurants along this stretch, La Chica creates the best atmosphere when overlooking the marina and out towards the mainland. If you spend enough during your visit, you even get to spin the wheel of fortune, with prizes on offer including 10% off your bill or free tacos on your next visit (as if you needed another excuse to come back).

8. Manaf Nasi Ayam

Family-run restaurants are dotted all over Penang and they’re often the tastiest (and cheapest) places to dine. This small version opposite the Tropical Spice Garden is a true hidden delight, ideal for a meal after you’ve visited the Spice Garden or you’re on your way back towards George Town from ESCAPE or the National Park. There’s also a bus stop right outside the entrance.

The menu isn’t the most extensive but what they do serve (laksa, char kway teow, fried rice) is lovingly made by the mother of the family. The rest of the clan help out as waitresses, making this a true family-run venture. The tables are directly over the beach with the waves crashing close by. With a total bill around RM30 for a family of four, it’s unbelievable value for money, considering the quality of the food and the setting.

9. Lotus’s food court

Sometimes, you just need a food court. But not all of them are created equal and, this being Penang, even the food courts are something special. Most of the malls and shopping centres around the island have their own version and our go-to is Lotus’s Tanjung Pinang.

The main area houses a dozen different options, ranging from Turkish, Thai, Japanese, Chinese, Malay and Indian. You can tell how good it is by the number of locals eating here, chatting away with friends on the long tables. Most meals are in the range of RM5-15, with hot and cold drinks also available from the vendors.

10. Red Garden Food Paradise

Red Garden Food Paradise

Ideally located next door to the Blue Mansion, the Red Garden Food Paradise is often considered the best food court in George Town and is usually filled with a lively atmosphere each evening, especially from around 8.00pm and on the weekends (opening hours are 5.00pm to 1.00am).

Busy (but in a good way), you’ll be familiar with the concept if you’ve visited other food courts around Southeast Asia so simply grab a table, wander around the food stalls and order whatever looks tasty (beers and other drinks are sold by vendors who will find you once you sit down). The food is then delivered to your table and you pay there and then (cash only).

Later in the evening, there is live entertainment ranging from acrobats to karaoke, all of which confirms this place as a fun place to eat in George Town. Dishes are varied and showcase the best of Penang’s street food, including nasi lemak, dim sum and hokkien mee; many visitors eat here on their first night and keep returning night after night, never sampling the same dish twice.

11. Indigo Restaurant @ The Blue Mansion

One of the classiest and most atmospheric restaurants in George Town, Indigo combines old-world charm with modern, creative dishes. Located within the Blue Mansion, the restaurant is open for lunch (every day) and dinner (only weekdays). You don’t need to be on the tour or staying at the hotel to make a booking.

Hidden behind ornate wooden doors, the light and airy restaurant specialises in a fusion of flavours from Penang, Malaysia and beyond, with lamb shanks sitting alongside laksa on the menu. The original owner of the mansion, Cheong Fatt Tze, founded the first winery in China and its Changyu wines are still on offer at the restaurant.

12. The Wine Shop

This small but popular restaurant is one of several branches around the island. Located in the Hillside part of town, it’s less visited by tourists but is a popular stop for expats, and the menu reflects this. Less based around local dishes, the emphasis is more on pasta, steaks, pizza and burgers.

As its name suggests, The Wine Shop does a fantastic range of wines from around the world and it has one of the best selections on the island. Book ahead if possible, there isn’t much space inside and it can soon fill up, especially on Friday and Saturday evenings.

13. Bangrak Thai

A simple and modern place in the heart of George Town, Bangrak is popular as a lunch venue with its straightforward menu and reasonable prices.

Well-lit and efficiently laid-out, it’s a good restaurant to choose if you crave some authentic Thai food, although do note they don’t serve any alcohol if you’re used to having your red curry with a Beer Chang.

14. Hainanese Delights

Something of a George Town institution, this small family-run restaurant is hidden behind a large wooden door that opens out directly into the dining area, with the kitchen visible to the rear.

You might be unsure what to order from the Hainanese dishes on the menu, but the friendly owner (or other staff) and always on hand to explain, translate and help you choose something you’ll enjoy. Always popular with locals and tourists, the restaurant can get busy, but it has a wonderfully sociable atmosphere, almost as if you’re eating in someone’s home.

15. Kapitan

On the corner of Chulia Street and Pitt Lane, Kapitan has always stood out from the crowd in George Town, partly due to its bright red exterior, but mainly for the excellent Tandoori food on offer, not least the claypot biriyani.

Opening directly onto the street, the restaurant is low-key and popular with a mixture of people grabbing a quick dosa before work and families ordering tables full of biriyani for a celebration dinner. Make sure you include some naan bread on your order which is made freshly onsite and wash it all down with the various fruit drinks on offer. If you’re lucky, your drink might even be served by the robot waiter that cruises around the restaurant.


On Penang ebook

New for 2025, the On Penang ebook is the only travel guide you need for exploring the island of Penang. It is jam-packed with inspiration on what to do, where to eat, where to stay, and also includes a step-by-step self-guided walking tour of George Town (with photos). 

This is a PDF download for use offline and on the go (and ad-free!). Save it to read on the plane to Malaysia, download to your phone to follow the self-guided walking tour, or print it off at home before you leave on your adventures and highlight all the bits you want to remember for your visit.