This small, picturesque all-weather anchorage near Secret Cove has authentic pirate history. Following the building of the Canadian Pacific Railway, William Kelly smuggled illegal Chinese immigrants from Vancouver into the US by sea for $1 each. He evaded arrest by hiding in Smuggler Cove. During Prohibition in the 1920s, the Cove was used to store bootleg liquor en route from stills on Texada Island to rum-running boats heading to the US.

Today, Smuggler Cove is a beautiful 182-hectare marine park, and one of the most popular and best summer anchorages on the Sunshine Coast. A maze of rock faces, sand flats, rocky nooks and three large anchoring basins for cruising boats, the cove is accessed from the north end of Welcome Pass. Entry is best made at low tide when reef and rock projections are visible. There are many eye bolts located along the shoreline to accommodate stern lines. In summer there is usually a fair collection of boats anchored here, and it is a popular jumping-off point for paddlers wishing to explore several offshore islands in what is one of the most scenic locations on the Sunshine Coast.