Magic Reef is a site named and dived by Dive Adventures Ulladulla, the only dive centre in the town. The shop describes it as having a maximum depth of 27 m and a standard depth of 18–22 m, with a wide variety of sponges and good opportunities for macro photography.

The reefs off Ulladulla in this depth range are typically low rocky reef and boulder fields surrounded by sand. Below about 18 m the kelp thins out and the rock is covered by sponges of many shapes and colours, sea squirts, hydroids, bryozoans and small gorgonians. That growth supports a large population of nudibranchs, flatworms, small crabs and shrimps, and it is these subjects that the operator highlights for photographers. Larger animals include eastern blue devilfish, red morwong, wobbegongs and schools of yellowtail and pomfrets over the reef.

Magic Reef suits Advanced Open Water divers or Open Water divers diving with a guide, because most of the dive is at around 20 m. It is a slow dive rather than a tour of dramatic terrain; bring a camera with a macro lens or a torch and take time to search the sponges. The name is also used for other dive sites in Australia, so make sure you are booking the Ulladulla reef. Ask the shop what has been seen recently, as the dive guides track which nudibranch species are about and where the better sponge patches are.

Boat access only. Charters and private boats launch from the public ramp inside Ulladulla Harbour, reached off the Princes Highway in the centre of Ulladulla (about three hours' drive south of Sydney); there is trailer parking around the harbour and the dive shop is a short walk away. Magic Reef is one of Dive Adventures Ulladulla's regular boat sites; the shop has not published its position, so it is dived with the operator or with a mark obtained locally.

Like most Ulladulla sites it is a short run of 10 minutes or less from the harbour.

As an offshore reef in 18–27 m, it is below most surge but anchoring and recovery depend on sea state; the operator generally needs swell under about 2 m and winds under 15–20 knots. Southerly swell and strong summer north-easterlies are the usual reasons for cancellation. Visibility drops after big rain events and in plankton blooms in late spring.

Descend the line, set a turn pressure and explore the reef at 18–22 m, moving slowly to look for nudibranchs and other macro life on the sponges. Return to the anchor line for a controlled ascent and safety stop.

Dive Adventures Ulladulla lists Magic Reef among its standard boat dives (max 27 m, standard 18–22 m). No other operator publishes it.