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Dolans Bay is on the north shore of the Port Hacking estuary. The suburb is named after the small cove on the edge of Burraneer Bay. Houses overlook the bay and some line the water's edge together with boatsheds. Boats are moored in the bay, which provides protection from the southerly wind. Burraneer Bay features a private marina and slipway with full repair facilities.
Dolans Bay was named after a land owner in the area called Dominick Dolan. In 1858 Mary and Andrew Webster paid 108 pounds and 15 shillings plus a yearly pepper
Dolans Bay has a number of heritage-listed sites, including:
In the 2016 Census, there were 598 people in Dolans Bay. 86.8% of people were born in Australia and 91.4% of people spoke only English at home. The most common responses for religion were Catholic 38.1%, Anglican 25.9% and No Religion 19.5%.
The suburb can be accessed by Port Hacking Road or Saunders Bay Road, both of which lead to Lilli Pilli Point and Wally's Wharf.