Located at a distance of just 5 kilometres from Denham, Little Lagoon has a circular shape. Visitors enjoy fishing in the Little Lagoon, as the strategic location makes it a nursery for different species of fish.
Adventurous tourists can try canoeing and kite-boarding, favourite activities in the region. Facilities like barbecues and shade shelters are available on the shore.  A viewing platform and disabled fishing platform are also present at Little Lagoon. These platforms are available over the narrow channel, which links the lagoon to the sea.
Tourists can also opt to take the Lagoon Point walk trail, from Denham to Little Lagoon. It is a two hour walk, which introduces visitors to the exquisite variety of bird and plant life in this region. The entrance of the lagoon is home to some of the northern Australian mangrove species like mangrove grey fantail, heron and yellow white-eye.  Rufous fieldwren and the white-winged fairy-wren are some species of birds which inhabit the lagoon. Different types of waders and birds which frequent the region include caspian, bar-tailed godwit, fairy, red and great knots, crested and lesser crested terns.