The Lighthouse is Dahab's everyday reef, a gently sloping coral garden directly in the bay, accessible as a shore dive from the town's northern promenade. It is where dive guides assess students before taking them deeper, where newly certified divers find their sea legs, and where experienced divers come for a calm second dive after a morning at Blue Hole.

The reef descends gradually from the shore to a sandy shelf at 15–18m before dropping away into deeper water. The shallow section at 3–8m is dense with anthias, parrotfish and damselfish. Clownfish in their anemones are a fixture at 6–10m, and Napoleon wrasse work the reef crest. Hawksbill turtles feed here reliably in the mornings. The clear, typically calm water of Dahab Bay and the absence of current make this an ideal confidence-building dive for anyone new to the Red Sea.