Petoskey State Park is about six miles north of the city on the shore of Little Traverse Bay, reached via US-31. The park has two miles of beach that is the best Petoskey stone hunting ground in the area — the gravel shore here is particularly rich in fossils, especially after storms churn up the bottom and deposit fresh material on the beach. A Michigan Recreation Passport (or day pass) is required for entry.
The park also has a dune section with a short trail through forested sand dunes and good views over the bay from the ridgeline. Camping is available with sites that book up fast in summer and need reservations months in advance. Outside of peak season the park is much quieter and the stone hunting is actually better — fewer people ahead of you on the beach.