Nelly Bay is a beach and harbor area on Magnetic Island, accessible from the mainland via a vehicle and passenger ferry from Townsville. The primary launch point for paddlers is the Nelly Bay Harbour, located off The Esplanade, which provides direct access to the Coral Sea. As a beach launch, paddlers should be prepared for a carry from nearby parking areas. The bay is situated within a populated area that contains most of the island's shopping and amenities, offering convenient access to supplies. The overall character is that of a developed coastal hub with easy water access, serving as a gateway to exploring the island's coastline.

From Nelly Bay, paddlers can cruise along the coast, taking in views of the island's forested hills meeting the sea. A coastal walking track, the Gabul Way, connects Nelly Bay to Arcadia, indicating a scenic shoreline route that can also be followed by water. Nearby paddle destinations reachable from this launch include other bays on Magnetic Island such as Picnic Bay and Horseshoe Bay. The area is part of the Great Barrier Reef region, though reef access from the bay varies seasonally.

The bay experiences typical tropical conditions. Paddling is likely most favorable during the drier, cooler months. As a working harbor with a ferry terminal, paddlers must expect vessel traffic and should exercise caution, particularly when entering and exiting the launch area. General maritime rules apply. Facilities for paddlers are basic, centered on the harbor access point, with more comprehensive amenities like shops available in the nearby village. Wildlife sightings are likely, given the proximity to national park areas and seasonal creeks in the vicinity.