This beautiful Caye lies within a chain of islands that makes up the Cat Caye Range situated just 8 miles south east of Riversdale and 15 miles north east of Placencia Village. These are known as the Inner Cayes. With approximately 4 acres in size, this well elevated island was cleared, dredged and filled in the past and offers a great potential for any development.

The area is great for all kinds of water sports activities including, sailing, fishing, kayaking and snorkeling. The water on the western side is steep and provides a safe harbor for water vessels and would be a great location to construct a pier, and on the eastern side there is a beach area with shallow water. There is a neighboring island (Hideaway Caye) which operates as a small VRBO. The area is popular spot for passing Catamarans for safe harboring at night as it is well protected. Little Lagoon Caye also offers 2 small wooden cabins, ideal for storage for camping. No dredging allowed as it is in a protected area, sand fill allowed.  This island is considered a jewel in this location.