It sits at the tip of the Marblehead Peninsula, which divides Lake Erie proper from Sandusky Bay. In the summer, it is a popular vacation area because of its lake frontage, ferry service to the Lake Erie Islands, quality sport fishery, the nearby Chautauqua at Lakeside, and the Cedar Point amusement park.
Marblehead is also commercially important as a major limestone producer. The limestone is mined in nearby quarries and transported by conveyor belt to the Marblehead boat loading dock, where it is loaded on commercial lake freighters. The blocks of stone used to construct the Stannard Rock Light on Lake Superior were cut at Marblehead and hauled to the site from 1877 to 1881.
Marblehead is also home to a United States Coast Guard station, and to the Marblehead Lighthouse, the oldest continuously operating lighthouse on the Great Lakes. Nearby, in Sandusky Bay, is Johnson's Island, a former Confederate officer POW camp during the Civil War.