Genesis 32 describes Jacob wrestling through the night with a mysterious man as he prepared to meet Esau. After receiving a blessing and the name Israel, Jacob called the place Peniel because he said that he had seen God face to face and yet his life had been preserved.
The name appears as Penuel as Jacob continued his journey after crossing the Jabbok.
During Gideon's pursuit of the Midianite kings Zebah and Zalmunna, the men of Penuel refused to provide food for his exhausted army. After his victory, Gideon returned and destroyed the tower of Penuel.
After the division of the monarchy, Jeroboam I fortified or rebuilt Penuel along with Shechem, demonstrating the strategic importance of the site east of the Jordan.