The village is partially surrounded by Walpole-Nornalup National Park. The village is mostly residential with a small area zoned for tourism. There is a chalet development. Peaceful Bay road leads out of the town; the "Original Peaceful Bay Settlement" is on the road and is considered of historical value.[4][5] The bay to the east of the town is called Foul Bay.[6]
In the 2021 census, Peaceful Bay had a population of 71 people, with 19 families and 261 private dwellings. There was an average of 1.8 people and 1.6 motor vehicles per dwelling.[10]