Powderly is a city in Muhlenberg County, Kentucky, United States. The population was 846 at the 2000 census. The city is named for Terence Powderly, who opened a coal mine there in 1887.
Powderly is located at 37°14′25″N 87°9′25″W / 37.24028°N 87.15694°W / 37.24028; -87.15694 (37.240274, -87.157042).
According to the United States Census Bureau, the city has a total area of 1.4 square miles (3.7 km²), all of it land.