Vila Franca Islet is the exposed remains of a Surtseyan volcanic cone[2][3] of phreatomagmatic origin heavily eroded by the sea and seismic forces over time.

[3] The islet is located between 500 metres (1,600 ft) and 1 kilometre (0.62 mi) off the south-central coast of the island of São Miguel, adjacent the municipality, town, and port of Vila Franca do Campo.

As the opening in the crater faces north toward São Miguel, it creates a small natural harbor and sandy beach protected from wave action.

[2][3] The harbor and beach are so popular for swimming that from June to October multiple daily ferries transport bathers between Vila Franca do Campo and the islet.

[1] Vila Franca Islet functions as a breeding ground for various marine bird species including Bulwer's petrel, Cory's shearwater, little egret, and sooty tern.

Fish and other aquatic animals present in the area include greater amberjack, groupers, moray eels, nudibranchs, parrotfish, sea urchins, starfish, and stingrays.

[6] Vila Franca Islet was discovered no later than 1537—the year written documents first attest to its existence—as early settlers of São Miguel moved west from their original settlements.