It has no permanent settlements, but there are two public use cabins located on the bay, one at its head and another at Holgate Arm.

It is likely that the bay once terminated at Aialik Sill, by Pedersen Lagoon prior to the year 1700.

Aialik Glacier, which has created the bay via the process of overdeepening, has since retreated by 4.5 miles.

It is a major destination within the Kenai Fjords National Park, as many water taxis, kayak tours, anglers, and recreational boaters use the bay to access its many coves.

Abra Cove is a popular camping spot featuring freshwater, tall cliffs, waterfalls, and views of glaciers.