The island is created by a river delta of the Bojana River. Legend says it was formed by gathering river sand around a ship sunk at the mouth of Bojana river, but it is more likely to be a delta in formation. It is located on the southernmost tip of Montenegro, with only the Bojana river separating it from Pulaj and Velipojë in the Albanian territory.
The island is of triangular shape, bordered from two sides by the Bojana river, and by the Adriatic Sea from the south-west. It has an area of 4.8 square km.
It is a popular tourist destination, with 3 kilometres (2 miles) long sandy beach with traditional seafood restaurants. Ada Bojana is one of the premier kitesurfing and windsurfing locations on the Adriatic Coast with strong cross onshore winds during summer afternoons. Ada Bojana's main income is from Camping
The New York Times included Ada Bojana and Montenegro's South Coast (including Velika Plaza and Hotel Mediteran) in a ranking of top travel destinations for 2010 - "Top Places to Go in 2010".