Thompson Falls State Park sits on 36 acres along the Clark Fork River about two miles northwest of town, on the reservoir created by the dam. It is a genuinely pleasant spot: cottonwoods and pines shade the riverbank, there are picnic tables and a boat launch, and the water is calm enough for canoes and kayaks. The park sees relatively little traffic compared to better-known Montana state parks, which makes it all the more relaxing.
Fishing from the bank or by boat is the main activity. The Clark Fork holds brown and rainbow trout, and the reservoir section near the park is a reliable stretch. The campground here is basic but functional — a useful base if the campgrounds closer to Glacier fill up in high summer. The drive out from town along the river is worthwhile on its own, giving good views of the canyon walls that tighten around the Clark Fork as it bends northwest toward Idaho.