In 1854, geologist A.R.C. Selwyn reported a multitude of fossils in the limestone cliffs in a stretch of rocky bay beach between Mornington and Mount Martha. They showed evidence of Australian sea life from 10-15 million years ago and led to the beach being named Fossil Beach. Fossil Beach is not a sandy swimming beach but a narrow rocky beach where fossils were found.

Along the tree-lined walk down to the beach, look out for native birds such as the yellow wattle bird and yellow robins. The small section of this bay can be explored via multiple walking tracks and a long sea wall built to aid entrance onto the rocks. The beach is also a popular leash free area for dogs.