Dollar Bay is a census-designated place (CDP) in Houghton County, Michigan, United States.

[3] Dollar Bay is located in the southwest corner of Osceola Township.

The CDP extends west into Franklin Township as far as Goat Hill Road and south into Torch Lake Township.

[4] The community takes its name from Dollar Bay, a small inlet of Portage Lake, the water body that separates the Keweenaw Peninsula from the rest of the Upper Peninsula of Michigan.

M-26 is the main highway through Dollar Bay, leading west 3 miles (5 km) to Hancock and northeast 5 miles (8 km) to Hubbell.