Lady Elliot Island has many wonderful dive sites, but the most dramatic dive site off this coral cay would have to be The Blowhole. Located off the eastern side of the island, this spectacular L-shaped cave opens on the reef top and exits on the reef wall. The cave is large enough to drive a bus through, so can easily accommodate a boat load of divers. The start of the cave is in 14 metres, then divers descend into a dark hole eight metre deep.

Inside the cave divers will find schools of baitfish and glassfish in shimmering clouds. In darker recesses are squirrelfish, crayfish, shrimps and wobbegongs. The cave mouth is around 20 metres away and is a location where batfish, trevally, sweetlips and coral trout like to hang out. Once outside the cave there is a coral wall to explore, which is a good place to see reef sharks, turtles and the odd manta ray.