The town beach runs alongside the main street, separated from it by a low stone wall and a strip of lawn. The sand is pale, the water is Bass Strait cold for most of the year, and the wave action is modest — it's a strolling, paddling, and crabbing beach rather than a swimming one.
The little penguin (Eudyptula minor) colony that gives the town its name nests in the rocks at either end of the beach and along the foreshore towards Sulphur Creek. The birds come ashore at dusk between September and March; a quiet wait at the eastern end of the beach around sunset usually pays off. Use a red-filter torch if you must use light at all — white light disorients them.