Donald Duck Bay is a sandy shallow bay, named after a rock above the surface that resembles the Disney character. It's an ideal site for both divers and snorkellers as it's shallow and protected from the elements. There are also facilities and a campsite just through the tree line past the beach. If you have time, take a quick walk up to the viewpoint to catch a great view and take some picture postcard photos.

The dive site is nice and shallow, ideal for a dusk or night dive. There is an abundance of soft corals here. Maximum depth at Donald Duck Bay is around 20 metres, and there are many small pinnacles and bommies hiding interesting inhabitants. To the north of the dive site there are some larger rock formations and a nice swim through at about 12 metres. Nurse Sharks hunting have been reported on night dives.

An added attraction to Donald Duck Bay is the many Turtles that reside here. They swim to the surface next to the dive boats waiting for food to be thrown in the water for them. They've become accustomed to this, but generally it shouldn't be encouraged as it can adjust their natural behaviour and feeding patterns.