Nelson Bay is a significant township of the Port Stephens local government area in the Hunter Region of New South Wales, Australia.

[4][5] It is located on a bay of the same name on the southern shore of Port Stephens about 60 kilometres (37 mi) by road north-east of Newcastle, its nearest rail link.

It is a major tourism centre, particularly for dolphin and whale watching, surfing, diving, fishing and other recreational aquatic activities.

Nelson Head Light, an unusual lighthouse built in 1875, is positioned on the northeast corner.

He built a house "Westward Ho" in 1882 on the hill overlooking the modern town, on 16 ha (40 acres).