On the coast 130 km north of Brisbane. A small town with a population of more or less than 1,000, which you pass through on the way to the Fraser Island ferry. South of town are the rainbow beach whose coloured sands give the town its name, the rusting wreck of the Cherry Venture which came ashore 30 years ago and has been sinking into the sand ever since, and Cooloola National Park. Rainbow Beach is useful as a base for exploring Fraser Island and the Cooloola National Park.

The area is popular for villa holidays.