Mystery Bay is a string of small beaches and rocky reefs about 12 km south of Narooma, with a popular campground behind them. It is listed on the Batemans Marine Park snorkelling and diving page, and the Nature Coast Marine Group describes multiple reefs with some shelter in most weathers and fantastic variation in kelp species. A ScubaBoard report mentions small boats launching from Mystery Bay by inflatable to reach Montague Island in calm weather.

The rocky outcrops divide the shore into coves facing different directions, which is why one of them is usually sheltered. The reefs are shallow rock with a mix of kelps – common kelp, crayweed and other brown and red algae – that support a range of fish: blue groper, luderick, eastern rock blackfish, sweep, mado, leatherjackets, wrasse and magpie morwong. Octopus, sea stars, urchins and nudibranchs are common, and stingrays rest on the sand. Weedy sea dragons live in kelp along this coast.

The site suits snorkellers, families and new divers, and is especially convenient for anyone camping at Mystery Bay. It is also a good choice when the Narooma bar is closed. It is not a deep site, and there is no detailed published layout, so depths here are indicative. Check the marine park zoning map before fishing or collecting. Combined with the nearby village of Central Tilba, it makes a pleasant base for a few days of South Coast diving. On calm days the outer reefs off the points are worth exploring for larger fish, though they are more exposed.

From Narooma drive about 12 km south on the Princes Highway, turn left onto Mystery Bay Road and follow it to the Mystery Bay campground and day-use areas by the water. Park near the bays and walk a short distance to the shore. The Nature Coast Marine Group notes multiple reefs, some shelter in most weathers and camping available.

Small boats sometimes launch here to reach Montague Island by inflatable in calm conditions.

The Nature Coast Marine Group says the bays offer some shelter in most weathers, because the rocky outcrops create coves facing different directions. Choose the cove in the lee of the day's swell. Large easterly or southerly swell still reaches most of the coves.

Visibility falls after rain.

Pick the most sheltered cove, enter from the sand and follow the reef edge outwards through the kelp at 3–8 m. Turn at half gas and return along a different line to the beach. Look closely in the kelp for sea dragons.

No scheduled operator; listed by the Nature Coast Marine Group and the Batemans Marine Park diving page. Visited independently by campers and local divers.