Signagi is located in the Kakheti region of Georgia, first settled in the Paleolithic period. Throughout its history Signagi or Sighnaghi was known to the local population as Kambechovani, and later as Kisikhi or Kisiki. The word Sighnaghi in the Turkic language means shelter or trench. Signagi as a settlement was first recorded in the early 18th century.

Sighnaghi serves as a popular tourist destination due to its location at the heart of Georgia's wine-growing regions, as well as its picturesque landscapes, pastel houses and narrow, cobblestone streets. Located on a steep hill, Signagi overlooks the vast Alazani Valley, with the Caucasus Mountains visible at a distance. 
The name “Sighnaghi“ comes from Old Turkic word of syghynak (Turkish: sığınak, Azerbaijani: sığınacaq), meaning "shelter" or "asylum".