The beach is 1km long and faces south-east, with a jetty extending 200m into the bay. The beach is backed by a foreshore reserve and road, and then the main island settlement of Picnic Bay. It is protected to the east by Hawkings Point, so waves are usually calm to low. At high tide the beach is only 20m wide. As the tide falls, it widens to about 50m and the extensive sand and reef flats are exposed. The best swimming is at high tide in the enclosure or, when safe, snorkelling over the reef flats. At low tide the bay is generally too shallow for comfortable swimming.

The flats extend several hundred metres off the eastern end of the beach, narrowing to 100 m off the western Nobby Head end. The Picnic Bay Surf Life Saving Club is located at the base of Nobby Head at the western end. The club maintains a stinger enclosure and a watch tower, both located up against Nobby Head. There is also a boat ramp crossing the beach next to the jetty.