Nelson Bay is a significant township of the Port Stephens local government area in the Hunter Region of New South Wales, Australia. It is located on a bay of the same name on the southern shore of Port Stephens about 60 kilometres by road north-east of Newcastle, its nearest rail link. At the 2021 census, Nelson Bay had a population of 6,141. It is a major tourism centre, particularly for dolphin and whale watching, surfing, diving, fishing and other recreational aquatic activities.