Nearby communities in Price County include Phillips, the county seat, which lies 18 miles to the south, and Fifield, an unicorporated community four miles south of Park Falls. The Village of Butternut, although located in southern Ashland County, is actually closer physically and economically to Park Falls than to other communities in Ashland County. Many Butternut residents work and shop in Park Falls.

The economy of Park Falls is primarily based on natural resources. Historically, the timber in the region provided the very reason for the community's existence, with several lumber mills located in Park Falls. Today, the major industries in the community relate to wood, health care, metal manufacturing and tourism/recreation. The major employers in Park Falls include: Fraser Paper Corporation's Flambeau Mill, Flambeau Medical Center, Marshfield Clinic, U.S. Forest Service, Department of Natural Resources, Park Falls Public Schools, St. Croix of Park Falls, Park Manor Nursing Home, Supportive Home Services, Stueber Beverages, Saunders Wood Specialties, Park Falls Hardwoods, and Flambeau Metals.

The lakes, rivers and wooded setting of the Park Falls area have attracted visitors from southern Wisconsin and Illinois for many years, and tourism is welcome as a significant factor in the area economy. Numerous resorts are located on the lakes and rivers and the Chequamegon National Forest, Price County Forest and nearby Flambeau River State Forest offer thousands of acres of recreational opportunities. Snowmobiling, All Terrain Vehicle riding and Cross Country Skiing have recently increased in popularity, bringing tourists into the area.

Park Falls prides itself on the fine athletic programs, boasting recent state championships in both Girls and Boys Basketball, Cross Country and Hockey. The residents have also supported a large Ice Arena Project which is nearing completion as well as a renowned Junior Golf Program which includes a Junior Golf course and clubhouse also nearing completion.