Mount Gretna is a borough in Lebanon County, Pennsylvania, United States. It is part of the Lebanon, PA Metropolitan Statistical Area. The population was 242 at the 2000 census. It is a popular place in the summer, for it has a nationally ranked juried art show (third weekend in August), jazz and chamber music concerts, lectures, book reviews, and an annual tour of historic homes and cottages (1st Saturday in August). The community also has a roller rink, lake, open-air playhouse, miniature golf course, several restaurants, playgrounds, and an award-winning ice cream parlor known as the Jigger Shop. The surrounding area, which includes seven distinct neighborhoods, has a year-round population estimated at 1,500 persons.