In front of Padang Bay is the dive site known as The Channel. It is the main channel where ferries come and go between Bali and Lombok. The ferryboats can be seen whilst under water and when in the deeper parts if you look above your head you will see them pass through the channel. The current is normally mild but it can be unpredictable and it can change quite quickly. It is important that only experienced divers are aware of this and watch out for the sometimes strong down currents.

The dive itself has a gentle slope down to an area where there are many pinnacles and corals and a sandy bottom. The dive is perfect for divers of all abilities, from experienced divers to beginners. It is a great dive for macro divers and macro photographers, who will be able to search amongst the coral to find many different kinds of small marine life. Pygmy seahorses are often spotted for example.

It is also a great dive site to see many reef fish such as sweet lips, puffer fish, anemone fish, clownfish, lionfish, and crocodile fish. There are larger species as well such as trevally, king mackerel, jackfish, dogtooth tuna, and moray eels. Cuttlefish and octopus can be seen at this dive site, and green turtles are often commonly seen amongst the slope that goes down to about 30 meters.

There is also a high chance of seeing different shark species including reef sharks, both white tip and black tip, nurse sharks, and often Wobbegong or carpet sharks can be found sleeping along the sloping sandy bottom. There are some smaller caves as well, which if visited might reveal some white tipped reef sharks having a nap. This is an amazing site and they are rarely disturbed by divers.