This low, flat island is situated four kilometers southwest of Duljo Point off Panglao Reef. Surrounded by a sandy shell coralline beach, the island is fringed by a narrow reef shelf 9 to 49.5 meters wide. The tops of the submarine cliffs are covered with hard coral while lower levels are covered with sponges and gorgonians. A thriving fish community is found around the cliff face area. Jacks, barracudas and mackerels also abound.

Balicasag Island has a total land area of 25 has., 1.5 has., of which has been developed into a resort. This "Special Interest Resort" has been operational since October, 1989. PTA together with the Philippine Navy promote underwater sports and protects a marine life sanctuary showcasing a model for marine environmental conservation, ecological preservation and tourism.