Yanakie is positioned on the narrow strip of land which joins the Wilsons Promontory National Park with the south coast of Victoria, located south of the major centre of Foster and on the opposite side of Shallow Inlet to Sandy Point.
With Yanakie being the last town before the entrance gates to the Wilsons Promontory National Park, it has become a popular spot for visitors to the park and surrounding areas to stay at. There are numerous accommodation options including cottages, cabins, Bed & Breakfast and caravan parks, many offering spectacular views across the waters surrounding Yanakie and of the mountain ranges that traverse Wilsons Promontory.
The commercial centre of Yanakie is small, consisting of a general store, petrol station and public hall on the road to Wilsons Promontory near Millar Road. Most of the residents in the area are either involved in the tourism industry or in dairying, with large farms of cattle located in green fields surrounding the town.
The coast on the western side of Yanakie fronts Shallow Inlet, which is a calm body of water, popular with boating enthusiasts. On the east coast fronting Corner Inlet there are boat launching facilities at Duck Point and a water front caravan park. Duck Point offers spectacular views towards the south and east of many of Wilsons Promontory's mountain peaks and coastal features.