Naukati Bay on the northwestern shore of Prince of Wales Island began as a logging camp and remains an unincorporated community. Historically, Alaska Natives camped here and called the bay Naukatee. It is the gateway to Sea Otter Sound, which is rich in marine life and wildlife.

Several attractions draw people to the community and services available here are indicated by the icons to the right.

A floating dock and boat launch are near the Naukati Bay Shellfish Nursery, where oyster spat (seeds) are grown and provided to a number of oyster farms in the area. Naukati Bay is the hub of the fast-growing oyster production industry on Prince of Wales Island. Commercial operations around Sea Otter Sound range from small farms, with about 100,000 oysters in floating arrays, to large facilities that keep as many as 1.5 million oysters feeding on the sound's rich nutrients. Oysters from this area are sold to Alaskan retailers, the cruise industry, lodges and restaurants and shellfish connoisseurs as far away as Hawaii.

A covered picnic area is open to the public and is a favorite gathering place for community activities. Naukati Bay’s Fourth of July celebration includes an axe throwing contest, a skunk cabbage contest and games for children, closing with a brilliant display of fireworks.

The community is on the way to many of the Forest Service’s well-maintained trails; numerous creeks and lakes are also nearby off the Scenic Byway. Accessible from the Naukati Bay area are Sarkar Lake Canoe Loop; Beaver Falls Boardwalk Trail; El Capitan Cave; and Cavern Lake trail. RV parking is available, but not other RV services.