Smugglers Cave is one of the big sea caves that punctuate the sandstone cliffs of the outer Beecroft Peninsula between The Drum and Drumsticks and Point Perpendicular. McFadyen describes it as a large cave with an entrance from the open sea and a more protected entrance from a small bay, the passage running in a dog-leg shape to a narrower and shallower 'exit'. Depths range from 12 m inside to 33 m outside on the reef below the cliff.

The cave's size and the play of light through its two entrances are the main attractions. Inside, the walls carry sponges and encrusting growth adapted to low light, and eastern blue devilfish, bullseyes and wobbegongs shelter in the gloom. Outside, the cliff drops to boulder reef with the usual Beecroft Peninsula fish life – schools of yellowtail and sweep, leatherjackets, blue groper – and on some days fur seals from the nearby Drum and Drumsticks colony.

This is a dive for very calm days only. Even modest swell produces surge through the cave, and the combination of an overhead environment, depth outside and an exposed coast means it is best suited to Advanced divers with a torch, good buoyancy and experience in caverns. Published detail on the cave's exact dimensions is limited, so divers should rely on the local knowledge of Jervis Bay skippers and guides. The name recalls the smuggling legends attached to many of the South Coast's hidden coves. It is often combined with the Wandra or the Drum and Drumsticks on the same trip, since all three lie on the northern section of the peninsula.

Charters depart Huskisson (Dive Jervis Bay; boats in Currambene Creek). Private boats launch at Huskisson, Callala Bay or Murrays Beach (Booderee), or at Currarong's ocean ramp. From Huskisson cross the bay to the entrance and turn north around Point Perpendicular onto the outside of the Beecroft Peninsula; the cave lies on the outer peninsula north of Crocodile Head towards The Drum and Drumsticks, about 35–40 minutes from Huskisson or 15–20 minutes south from Currarong.

The skipper will position the boat off the seaward entrance only in very calm seas.

The outer Beecroft Peninsula cliffs face east to south-east and take the full force of any south-easterly or easterly swell; the sites are diveable in swell under about 1.5 m and are well sheltered from south-westerly and westerly winds, which make them the go-to sites in winter. North-easterly winds (common on summer afternoons) make the run from Huskisson across the bay entrance rough and cause surge on the northern-facing cliffs. Visibility is commonly 15–25 m and can reach 30 m in winter when clear oceanic water sits against the peninsula.

Currents along the cliffs are usually mild but can run at the bay entrance on a strong tide change. Defence live-firing closures can shut the sea area – check before going. Smugglers Cave in particular needs very calm conditions – any swell produces strong surge in the cave.

Enter through the seaward opening, follow the dog-leg through the cave with a torch to the narrower, shallower exit into the small bay, then return along the outside of the cliff to the boat. Keep close to the wall and watch the surge.

Cavern within the light zone for most of its length; carry a primary and backup torch.

Dive Jervis Bay (Huskisson; boats Avalon and Genesis) runs double boat dives most days, and Deep 6 Diving Jervis Bay / other Huskisson operators also visit; site chosen on the day according to swell and wind. Smugglers Cave is visited only on the calmest days.