
Some of the prominent islands like Nalabana, Kalijal, Somolo, Honeymoon, Break-fast, Birds and Rajahansa inhabited by small subsistence fishermen families, are popular destinations for daily boat trips. Because of its rich bio-diversity and socio-economic importance, Chilika was designated as a Ramsar site in 1981 to afford better protection.
Chilika is recognized as one of the most important wetlands in the world because it is home to a phenomenal variety of birds. Chilika Lake offers visitors a spectacular display of its colorful avian charms in a thousand different hues presented by over 160 species in the peak season between November and February. The lake and its reed islands teem with nesting birds-white bellied sea eagles, ospreys, golden plovers, sand pipers, flamingos, pelicans, shovellers, gulls, include migratory ones flying great distances from Iran, Central Asia and Siberia.
The large Nalabana Island (Forest of Reeds) covering about 16 sq km in the lagoon area was declared a bird sanctuary in 1987. The core area of about 9 sq km attracts around 400,000 waterfowls of different species. Often underwater, the island gradually emerges with the outset of summer. It is literally a paradise for bird-watchers.

Of late, slightly reduced number of birds--owing to growth in prawn farming as well as silting and reduced salinity--has alarmed the conservationists. The plying of mechanized boats, the increasing of different fishing nets and gears has threatened the flagship species of the Chilika lagoon, the Irrawady dolphin.