Lexington, Kentucky, known as the "Horse Capital of the World," is located in the heart of the Bluegrass region. It is the second-largest city in Kentucky, after Louisville. On January 1, 1974 Lexington became the first municipality in the Commonwealth of Kentucky to form a consolidated city-county government by merging with Fayette County. In 2005, the population estimate given by the U.S. Census Bureau was 268,080. Its population, territory and government are coextensive with that of Fayette County. The Lexington-Fayette Metropolitan Area (consisting of Fayette and four of the five surrounding counties) had a population of 429,889 as of 2005 estimates. The Lexington-Fayette-Frankfort-Richmond Combined Statistical Area, which includes the Metro area and an additional seven counties, had an estimated population of 635,547 in 2005. Garrard County is also an important commuter county, even though it is excluded from the CSA.

Lexington is home to the Kentucky Horse Park, Keeneland race course, a Jif peanut butter plant which produces more peanut butter than any other factory in the world, Transylvania University and the University of Kentucky (UK). The area code (859) spells out UKY. UK's basketball program is immensely popular in the city, and the University of Kentucky Wildcats basketball team have won more games than any other team in college basketball history.

Lexington has been selected to be the site of the 2010 World Equestrian Games .