Castelnuovo is located along the main road of the Valsugana at the foot of the Monte Civerone.
Since WWII Castelnuovo has advanced to an industrial centre, even if agriculture has still got an important role to play in the village. Fruit-growing and wine-growing are still of utmost importance to this area and fruit orchards and vineyards characterise the landscape, catching the eyes of promenaders and hikers. Also cycling, e.g. along the cycling trail that snakes in the southern part of the village, is an especially popular activity.
A remarkable sight is the S. Margherita church, which is located in a striking position above the valley. Worth to be visited is also the manor of the De Bellat family and the Villa Cappelletti. Moreover Castelnuovo is ideal for horse riding holidays. The Mascalcia horse riding centre boasts a riding stable and a riding area. This is also where the horse riding trail of the eastern Trentino region snakes its way.