Lucky Bay Beach lies in wide, sheltered bay within the Cape Le Grand National Park. The beach stretches for 5 km and is rated one of the country's best beaches for its pure white sand, clear turquoise waters, and perfect swimming conditions.

Along the beach there is a lookout with a plaque commemorating an event in 1802 when the explorer, Matthew Flinders, took shelter from a storm in this bay and gave it its name. There are also some excellent coastal bushwalks with views of the many islands, and the beach is popular for fishing with a place to launch boats. There is also a campground with picnic areas, showers, and toilets.