Located just west of Staniel Cay, this fantastic underwater cave system is great for snorkeling, diving and wading. It is teeming with exotic marine life and a kaleidoscope of brilliantly colored coral reefs and fish, like yellow-tail snappers, Angel fish, Sergeant Majors and the like. The grotto's mystique is heightened by the small, almost hidden entrance. It is advised to enter at ebb tide (low or slack tide) and snorkeling equipment is optional. At high tide, however, diving equipment is necessary.
The grotto got its name from the 1965 James Bond spy film "Thunderball," which was shot there. It was also the site of another James Bond film, "Never Say Never Again" in 1983, also based on the Thunderball novel.