Waratah Bay is located at the northern end of the bay which the town is named after, and a few minutes drive west of Sandy Point which also fronts the same bay. It is a short drive to Wilsons Promontory National Park and surrounding attractions.
Waratah Bay is the place to go for a quiet, secluded beach front holiday. There are no shops in the town, just a caravan park, holiday houses and other accommodation to accompany the small resident population.
The beaches at Waratah Bay are popular with surfers and swimmers, offering great expanses of sandy coastline with the attractive backdrop of mountain peaks along Wilsons Promontory's west coast in the distance.
To appreciate the unspoilt beauty of the area, the eastern end of Iluka Court offers good views over the town and down to the beach. Spectacular views can also be enjoyed by walking along the bush fire track which starts at the northern end of Brown Street. One of the best viewing spots is from the dam along the track, just 300 metres from the start.