Located a short drive from the main village shops of the picturesque Mount Eliza, Canadian Bay is a sandy beach with picnic facilities available. Above Canadian Bay, a walking track runs along the bluffs. The beach is suitable for fishing and swimming, care should be taken at low tide around the rocks and reefs and be cautious of strong rips when higher waves are present.

Car parking is available nearby the Canadian Bay Yacht Club and at the Mount Eliza dog car park.

A leash-free dog beach is located to the North located at the end of Freemans Road. Note that during daylight savings times, restrictions apply between 9am and 7pm.