The Blue Cave is found in Žanje Bay, below the Lubenice village on Cres Island. The Blue Cave may be a sea cave formed during a cliff at the very fringe of the beach and has two entrances. The larger entrance may be a bit farther faraway from the beach, and may be reached by swimming or during a canoe. The cave is about 20 meters long and features a large air space. Within the cave lies a small pebble beach.
The long narrow entrance is at a depth of a couple of meters and may only be entered by diving. Light reaches the cave through cracks in the ceiling and walls, and gives it a special ambiance. In the summer, the sun enters the cave in late afternoon at an angle and creates and interesting play of light and water, reflecting the beautiful blue color in various tones.