In December 1943 a Curtiss-Wright CW-22B Falcon, serial 3771, operated by the United States Army Air Forces' 45th Service Group based in Townsville, suffered engine failure and ditched in Nelly Bay. The crew were rescued, and the aircraft sank to the sandy bottom of the bay, where its remains still lie. The Marine Life Network records the site, noting that the wreckage is scattered and that the main recognisable features are the engine and propeller.

The CW-22 was a two-seat low-wing monoplane used as an advanced trainer and liaison aircraft; several were used by Allied forces in Australia and the Netherlands East Indies. Townsville was a major Allied air base during the Second World War, and the Falcon's loss is one of several wartime aviation incidents around Magnetic Island, which also carries the Forts complex above Horseshoe Bay. As a dive, this is a niche site for wreck and history enthusiasts rather than a reef experience.

The remains lie on sand in a bay where visibility is often limited, and the aircraft has had more than 80 years to break down, so expect an engine block and propeller encrusted with growth, surrounded by fragments, with small fish, gobies and invertebrates using them as shelter. The source listing gives a position in the centre of Nelly Bay but its distance reference is ambiguous, and no depth is published; the bay is generally shallow (under about 10 m). Wartime aircraft wrecks in Australian waters are protected historic remains and must not be disturbed.

Anyone planning a dive should obtain reliable marks from local divers and treat the site with care. Confidence in the exact position and current condition is low.

Magnetic Island is reached by SeaLink passenger ferry from the Breakwater terminal in Townsville to Nelly Bay (about 20 minutes, frequent daily services) or by the vehicle ferry from Ross Street, South Townsville (about 40 minutes). Buses, hire cars and 'topless' mokes run from the Nelly Bay terminal to Arcadia, Horseshoe Bay and Picnic Bay. The remains lie out in Nelly Bay on sand; the position is not publicly marked.

Divers generally go by small boat launched from the Nelly Bay ramp beside the harbour, using GPS marks obtained from local divers or the Marine Life Network, and drop a shot on the sand beside the remains. A shore approach from the southern end of the beach is possible for strong swimmers but involves a long surface swim in a boating area; tow a flag.

Magnetic Island's bays are sheltered from different winds depending on which side they face. The dominant south-east trade winds (15–25 knots, April–September) chop up exposed eastern and southern bays and stir up silt, so the island's best diving comes in the calmer months of August–December and on mornings before the sea breeze. Visibility is usually 3–8 m and occasionally 10–15 m; it drops sharply after strong winds, big spring tides and wet-season rain (January–April) when Ross River and Burdekin run-off discolour the water.

Dive at slack water, ideally high tide. Sargassum seaweed blooms in the hotter months can smother shallow reef flats. Marine stinger season (box jellyfish and Irukandji) runs roughly November to May – wear a full-length stinger suit or wetsuit with hood and gloves, carry vinegar.

Stinger nets are installed at Alma Bay, Picnic Bay and Horseshoe Bay in season. Nelly Bay is exposed to south-easterlies and boat wash; dive on calm days at high-tide slack.

Drop a shot on sand beside the marks, then search outward in expanding circles for the engine and propeller, the main recognisable features. Stay off the remains and return to the shot for ascent.

No regular operator; local club divers (NQUEC) and private boats. Nearest dive centres for gear hire, fills and local advice: Pleasure Divers Magnetic Island, Adrenalin Snorkel & Dive.