Peabody is the site of a major intersection of Interstate 95, Massachusetts Route 128, Massachusetts Route 129, and U.S. Route 1. Route 1. Route 1 runs north-south through the city as the main route connecting Boston and its northeast suburbs, while Route 129 is an east-west surface route in the nearby neighborhood of Lynnfield that runs concurrently with Route 1. I-95 and Route 128 share a 37-mile half-beltway around Boston, but at Peabody, the two roads split, with I-95 heading north into New Hampshire and Route 128 heading east towards Gloucester and Cape Ann. Massachusetts Route 114 runs through town from Danvers to Salem, intersecting at Exit 25 of Route 128 adjacent to the Northshore Mall. Route 35's southern terminus is just a half mile before Route 114 enters Salem.

The MBTA bus service runs through town on several lines. The Logan Express also stops at Peabody's Northshore Mall. The Springfield Terminal rail line runs through town, with one line connecting Lynnfield to Danvers and another, mostly abandoned, line connecting Middleton to Salem. The nearest commuter train service is in Salem, along the MBTA Commuter train's Newburyport/Rockport Line, which connects to Boston's North Station. The nearest airport is Beverly Municipal Airport, with national and international air service available at Boston's Logan International Airport.