Located approximately 20 km south from Denham, this area is named after the osprey or sea eagles which nest on the rock island just offshore. It boasts a boardwalk which extends over the ocean and from this you can see the Useless Loop salt pile as well as the spectacular Shark Bay wildlife. The warm, shallow waters of this bay attracts a variety of fish species such as whiting and mullet. You can also spot a variety of shark species here including the Lemon Shark, Nervous Shark and the Shovel Nose Ray. Dugongs can be seen during the summer months, when they come in close to shore to feed on the massive sea grass meadows in the Shark Bay area.
The deeper channel water contains many colourful species of coral making it great for snokeling.
Eagle Bluff also marks the spot where Captain H.M. Denham carved the inscription on a rock in 1858 from which the town derives its name. The rock is now placed in Pioneer Park in the township of Denham because it was fragile and breaking away from the Bluff.
The raised boardwalk also gives views of two small limestone islands once mined for guano and now important breeding bird colonies. The larger island is called Eagle Island.