In the paper, we consider the penalty finite element methods (FEMs) for the stationary Smagorinsky model. Firstly, a one-grid penalty FEM is proposed and analyzed. Since this method is nonlinear, a novel linearized iteration scheme is derived for solving it. We also derived the stability and convergence of numerical solutions for this iteration scheme. Furthermore, a two-grid penalty FEM is developed for Smagorinsky model. Under $\varepsilon<