Morwell National Park begins just south of town and protects a remnant patch of tall eucalypt forest and cool-temperate rainforest that gives a glimpse of what the Latrobe Valley looked like before the brown coal era. The park is small — around 170 hectares — but dense and lush, with mountain ash and manna gum towering over a ferny understorey.
The Billys Creek walk is the main trail, winding for about three kilometres through the forest past fern gullies, a small waterfall, and several picnic spots. The park has a resident koala population, and early morning walkers regularly spot them in the upper branches of the eucalypts. It is one of the few places in Gippsland where koalas are so reliably present without the need for a wildlife sanctuary visit.
The park has basic picnic facilities near the entrance off Morwell-Thorpdale Road. Entry is free and the trails are suitable for families.