Hout Bay is surrounded by mountain to the North, East and West and the Southern Atlantic Ocean to the South. In the North it is bordered by Table Mountain National Park comprising the Orangekloof Nature reserve and the bottom slopes of Table Mountain beyond that. To the North-West it is bordered by the backside of the Twelve Apostles, known as the Oranjekloof. To the West it is bordered by Little Lion's Head (Klein Leeukop), Karbonkelberg, Kaptein's Peak and the Sentinel. To the East it is bordered by the Vlakkenberg, Skoorsteenskopberg and Constantiaberg. The world famous Chapman's Peak Drive is carved out of the mountainside and leads towards Noordhoek and onwards to Cape Point.
The Hout Bay bay has a whites and beach, a popular attraction for tourists and locals (and their dogs) alike. Hoot Bay has one of the busiest harbours in the Western Cape with an established tuna, snoek and crayfish industry. The harbour is home to the Hout Bay Yacht Club and several restaurants.
There are three roads leading to and from Hout Bay, all over mountain passes. One goes to Llandudno and Camps Bay through the pass between Judas Peak (part of the Twelve Apostles) and Little Lion's Head. This pass is known as "Suikerbossie" (known as the toughest hill on the Cape Argus Cycle Race). Between Hout Bay and Noordhoek there is Chapman's Peak Drive, which was closed for many years and finally reopened in early 2004 with a controversial toll booth. Lastly a road leads to Constantia over the Constantia Nek pass between Vlakkenberg and the back slopes of Table Mountain
