Paya Terubong is a suburb of George Town in Penang, Malaysia. Located nearly 7 km (4.3 mi) southwest of the city centre, it is nestled within the central valleys of Penang Island and south of Air Itam. It is also one of the most densely populated areas on Penang Island. Paya Terubong first came into existence as an agricultural village. High-rise residences began to be built in the area in the 1980s, transforming Paya Terubong into a residential area.