Callala Bay is a small community on the north-western shore of Jervis Bay, with a boat ramp that is a common launch point for divers heading to the Fairey Firefly wreck and the northern shore sites. The bay itself is listed by Experience Jervis Bay as a beginner freediving site with shallow water, nudibranchs and rays.

The habitat is shallow sand and seagrass with low rocky edges – a gentle, muck-style environment where the interest is in small life. Nudibranchs, sea hares and crabs are found among the weed, rays and flathead lie on the sand, and schools of small baitfish and bream move over the seagrass. Seahorses are possible in the seagrass, as elsewhere in Jervis Bay. Water is usually calm, although visibility is variable over the sandy bottom.

The bay faces south-east across the water and is sheltered from the summer north-easterlies that roughen the western shore, but southerly winds push chop onto the beach. There is little scuba-specific documentation, so treat it as an easy shallow snorkel, freedive or training dive rather than a destination. Keep well away from the busy boat ramp and tow a float. The foreshore has parking and facilities, and the Firefly wreck lies a short boat ride away for those with a vessel. It lies within the Jervis Bay Marine Park. Freedivers use the calm, shallow water to practise, and the sandy bottom is forgiving for new snorkellers finding their buoyancy. Water temperatures range from about 15 °C in late winter to 23 °C in late summer, so a 5–7 mm wetsuit is sensible for anything longer than a quick summer snorkel, and a hood helps from June to October.

Callala Bay is about 20 minutes from Nowra via Culburra Road and Callala Beach Road (2.5–3 hours from Sydney). Park along the foreshore reserve near the boat ramp (roads and parking areas are signposted from the village centre), enter from the beach and snorkel or dive over the seagrass and along the rocky edges, keeping well clear of the boat ramp. Boat divers heading for the Fairey Firefly launch from the same ramp, and the Huskisson dive shops are about 20 minutes away by road for fills and hire.

Inside Jervis Bay the water is sheltered from ocean swell, but the bay is big enough for wind chop: strong north-easterlies (summer afternoons) make the western and southern shores choppy, and southerly or westerly winds affect the northern shore less. Diving is possible on most days of the year at one shore or another. Visibility is usually 8–15 m, better in winter, and drops after heavy rain when Currambene Creek and Moona Moona Creek flush tannin water into the bay.

Tides are small but high tide gives better visibility at the beach entries. Callala Bay faces south-east across the bay and is exposed to southerly winds and chop, but sheltered from north-easterlies.

Enter from the beach and cruise slowly over the seagrass beds and rocky edges in 2–5 m, searching for nudibranchs, rays and small cryptic fish.

No regular operator; listed by freediving guides as a beginner site; Woebegone Freedive (Huskisson) runs freediving in the bay.