Cape Mudge is on the southwest corner of Quadra Island, and marks the entrance to Discovery Passage, the major shipping artery for all coastal traffic, both marine and aviation, bound for the Inside Passage to Alaska. South of Mudge lie the Wilby Shoals which extend more than a mile and are marked by buoys. For larger southbound vessels out of Seymour Narrows, the red sector of the light positions a vessel away from the shallows of the Yaculta Banks. Strong tidal currents and opposing winds create extremely treacherous conditions with large standing waves. Cape Mudge is also a repeater site for Campbell River's Fire Department communications.