Point Lonsdale is situated on a rocky outcrop at the south-eastern end of the Bellarine Peninsula, on one side of The Rip, where the calm waters of Port Phillip meet the choppy seas of Bass Strait at this entrance point. On the other side of the bay entrance is Point Nepean, at Portsea on the Mornington Peninsula.
The town's commercial centre is situated near the southern end of Point Lonsdale Road, overlooking a grassy foreshore which extends down to the front beach. A walking and cycle track extends all the way along the foreshore from Point Lonsdale to historic Queenscliff, a few kilometres further along the coast.
Places of interest on Point Lonsdale's coastline include the several groynes which extend into the sea from the front beach and the Rip View Lookout which offers panoramic views across The Rip and towards Point Nepean on the Mornington Peninsula. The Point Lonsdale Back Beach, accessed at various points along Ocean Road, consists of windswept and sandy stretches of surf beach with access tracks to the beach going over tall sand dunes with several designated lookouts offering fine along the coast and inland over the town's residential areas.
The major landmark in town is the lighthouse situated at the tip of Point Lonsdale, which was built in 1902. Walking tracks circle the lighthouse and extend down the rocky headland to the beach below. Just north of the lighthouse is the Point Lonsdale Pier which is a popular spot for fishing and a good vantage point for taking in views of the lighthouse and surrounding coastline.
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