Sky Atlantic and Showtime have renewed John Logan's critically-acclaimed series, which will shoot on location in Dublin for nine episodes to air in 2016, reported Digital Spy.
The second season has seen Vanessa Ives (Eva Green) and Ethan Chandler (Josh Hartnett) forming a close bond as their group - including Sir Malcolm (Timothy Dalton), Dr Frankenstein (Harry Treadaway) and Sembene (Danny Sapani) - join forces to beat an evil force.
Sky Atlantic director Zai Bennett said of the series: "'Penny Dreadful' is the perfect fit for Sky Atlantic; truly international in scale and ambition but with a raft of British talent at its core, and filmed in the Republic of Ireland.
Showtime President David Nevins added: "John Logan's brilliant writing and this amazingly talented ensemble continue to draw a passionate, global fan base into the meticulously crafted world of 'Penny Dreadful'.
"Together with our wonderful partners at Sky, we're excited to see what new haunts John and his team have in store for season three."
"Penny Dreadful" launched in May 2014, and draws upon many characters from 19th century Irish and British fiction including Dorian Gray, Abraham Van Helsing and Victor Frankenstein.
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