The southeastern tip of Dugi Otok is split in two by the deeply indented Telašćica Bay, dotted with five small islands and five even tinier islets. With superb, sheltered azure waters, it's one of the largest, most beautiful and least spoilt natural harbours in the Adriatic. Consequently, it’s very popular with yachties.

The Kornati Islands extend nearly to the edge of Telašćica Bay and the topography of the two island groups is identical – stark white limestone with patches of brush. The tip of the western side of the island faces the sea, where the wind and waves have carved out sheer cliffs dropping 166m. There are no towns, settlements or roads on this part of Dugi Otok.