Penny Nichols (born December 26, 1947) is an American folk musician and songwriter. She began her career in the Southern California folk circuit in Orange County, California in 1964, singing in a bluegrass band with Alice, Bill & John McEuen. She formed a folk duo called Greasy Mountain Butterballs with Kathy Smith touring Vietnam in 1966. In 1967 she moved to San Francisco where she performed as an opening act at venues such as the Avalon Ballroom and Fillmore Auditorium and at outdoor music festivals. Her debut album, Penny's Arcade, was released by Buddha Records in 1967.

In 1968, she toured Europe and recorded at Apple Studios. She returned to Los Angeles to concentrate on songwriting and studied with vocal coach, Florence Riggs. Nichols was married to actor Harry Shearer from 1974 to 1977. She performed with her Jazz band, Black Imp.

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