This beautiful bay of white sand against a backdrop of cliffs hewn by erosion is named after astonishing mushroom-like coral formations visible in places. Teeming with multi-coloured fish, its turquoise lagoon is ideal for diving. Viewed from Jungutbatu, Mushroom Bay seems only a stone's throw away, but be aware that getting there on foot necessitates a lengthy detour via the hilltop settlement of Lembongan.