The bay is an arc of almost 20 kilometres of flat sandy beach framed by Cape Liptrap to the west and Wilsons Promontory in the east.

Waratah Bay is approximately 200 kilometres (120 mi) south east of Melbourne.

Because of its proximity to Wilsons Promontory, a wide variety of sealife can be found in the rockpools along the shoreline.

In recent years, humpbacks, southern right whales and others are increasingly visiting the bay areas as whale numbers increase and re-colonize into their former habitat of Waratah Bay.

Especially the right whales will be a big feature in winter to spring seasons as areas adjacent to Melbourne was used to be historical wintering/calving grounds.