Drake Bay is located southwest of Costa Rica on a stretch of land called the Osa Peninsula. Osa is quite remote and, apart from one other population center (Puerto Jiménez on the east side), consists only of small towns scattered among abundant rainforest and mangroves. Corcovado National Park, one of Costa Rica's most famous and biodiverse parks, covers a significant portion of the Peninsula and attracts scientists and nature enthusiasts from around the world.

The town of Drake Bay is located on the Pacific side of the peninsula, but is well protected from the surf due to its location in a wide inlet.

Right next to the community's main beach, Playa Colorada, there are several tourist businesses, including small restaurants, tour operators, shops and supermarkets. Other accommodations are spread along the coast in either direction or located in the mountains. Some of these can be accessed only by a forest trail or a short boat ride.

There are no banks or ATMs in Drake Bay and many businesses do not accept credit cards, so be sure to stock up on cash before you arrive.