The Kangaroo River flows approximately 47 kilometres through the Shoalhaven region of New South Wales, rising within Budderoo National Park and winding northwest across the western escarpment of the Budderoo Plateau, through Kangaroo Valley, before converging with the Shoalhaven River at Tallowa Dam, where it forms Lake Yarrunga. The river passes through two national parks and transitions from a flowing river with some moving water sections to the flat, still waters of the Lake Yarrunga reservoir. The area is located roughly two hours' drive from Sydney.

The river offers two distinct paddling experiences. The upper section from Hampden Bridge to Bendeela covers approximately 6.5 kilometres and includes 1.5 kilometres of small rapids followed by 5 kilometres of flat water. This section involves moving water and carries inherent risks for inexperienced paddlers; commercial operators offering guided trips on this stretch require participants to be competent swimmers and recommend children be at least 8 years old. The lower section, the Kangaroo River arm of Lake Yarrunga, is flat water with no powered boats or rapids, making it suitable for beginners and families. A longer route from Beehive Point to Bendeela covers 14 kilometres through Morton National Park. Paddlers can also access remote campsites along Lake Yarrunga that are reachable only by kayak or canoe, launching from Tallowa Dam and paddling northeast upstream.

Wind is a notable hazard on the lake sections. The Kangaroo River arm has stretches of wide, shallow water that can become choppy in moderate winds, while the Shoalhaven arm can funnel winds through the gorge, making headway difficult in slower craft.

Wildlife along the river is reported to be abundant, with kangaroos, wombats, echidnas, azure kingfishers, sea eagles, waterbirds, gang-gang cockatoos, and little lorikeets regularly observed. The river corridor passes through areas of rainforest, untouched wilderness, and farmland. Bass and carp are present in Lake Yarrunga for those who fish. The Bendeela Recreation Area provides a camping and picnic facility used as a base by paddlers. Campsite access at Lake Yarrunga remote sites requires advance planning, as they are only reachable by water.