The closest main town is Derby, 223 km southwest of the bay. The bay opens directly into the Indian Ocean, and Augustus Island is located just off-shore from the bay. The bay is part of the Prince Regent National Park and the Kunmunya Aboriginal Reserve.
It is the home to Australia's first cultured pearl farm and is named after the company's first principal, Tokuichi Kuribayashi (1896–1982). The Japanese-American-Australian company commenced operations in 1956 following the Western Australian Government repealing the Pearling Act that prohibited the production, sale and possession of cultured pearls.
By 1973 the Kuri Bay operation was producing 60% of the world's large white South Sea pearls. Paspaley, the biggest supplier of South Sea pearls in the world, has one of their largest and most well-known pearl farms located at Kuri Bay.
Kuri Bay experiences a tropical savanna climate (Köppen climate classification Aw).
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