Butterfly Beach is located nearby Agonda, to the north of Palolem Beach. It is named after Butterfly Island, which is situated at a distance of around 200 m. The island is accessible from the beach by ferry. The beach is famous for the dolphins which can be seen in the waters surrounding the island. The stretch is famous for sighting dolphins and watching the sun set. Along with dolphins, sea urchins, sea cucumbers and scarce grouper can be spotted. On the way to Palolem Beach, visitors can shop for articles made of bamboo, crochet work and shell work.