Kadmat is a haven of solitude with its fine lagoon of even depth, a long stretch of shoreline ideal for swimming and well secluded tourist huts. Apart from the shallow lagoon on the west that forms an ideal spot for water sports, there is also a narrow lagoon on the east. This is the only island in the group which has lagoon on both the sides.

The island has the finest diving spots in India. Considering the potential for water sports, a full-fledged Water Sports Institute and a Dive School with well-trained instructors have been set up in the island. Dive package tours and regular staying package tours are arranged to the island. It can accommodate only 48 tourists at a time.