Telašćica Bay, after which the entire Nature Park is named, is located in the southeastern part of Dugi Otok Island. It is approximately 8 km recessed into the land, and in its southernmost widest part it is about 1.6 km wide. The part of the bay facing to the southeast opens up to the neighbouring islands of Kornati. The bay itself is very indented, counting 25 bays, capes, and 5 islets. Its position ensures protection from bura wind, a northern wind coming from the mainland, and jugo wind, a southern wind coming from the open sea. This makes Telašćica one of the largest and most protected natural ports of the eastern coast of the Adriatic. The very name Telašćica probably comes from the Latin expression “tre lagus”, which translates to “three lakes”. It consists of three parts which are separated from one another by a narrowing. The three parts are Tripuljak, Farfarikulac and Telašćica. Morphogenetically speaking, the three bays are in fact karst sinkholes covered by the sea ten thousand years ago after the last (Würm) glaciation.

The bottom of the bay is mostly covered in seagrass communities, habitats extremely rich in fauna, and significant for the propagation of many fish species.