Plettenberg Bay hosts one of the largest seagull breeding colonies along the South African coast at the mouth of the Keurboom's River, named after the indigenous keurboom tree. Local vegetation varies from Cape Fynbos to indigenous forest further inland.

Whales are a common sight in the bay during their breeding season, while dolphins are frequently seen in the surf. A delicate flower-shaped sea shell called a pansy shell is endemic to this part of the coast, and is used as the symbol representing the town. Looking for these shells on the beach is a popular activity amongst visitors and locals alike.

Robberg Peninsula is maintained as a nature reserve, allowing visitors to see many of the area's local plants and animals. Plettenberg Bay is typified by an extremely mild maritime temperate climate with very few rainfall or temperature extremes. It is located within the Knysna Afromontane Forest biome, containing temperate gallery forest, supported by the mild temperatures and high, even distributed rainfall.

Tourism is a thriving industry in this area, starting in November when teenage school leavers are the first to descend upon the small town, followed thereafter by various waves of arrivals from abroad as well as other parts of South Africa.

The infrastructure of the town struggles to cope at the peak of the summer season, with traffic congestion and booked-out restaurants common from November to January.

The greater Plettenberg Bay area (known as Bitou) is also home to Birds of Eden, the largest free-flight bird aviary in the world, and the free-roaming primate sanctuary called Monkeyland, among many other tourist attractions.