Sveti Nikola island is located opposite to the town of Budva, 1 kilometre (0.6 miles) from Budva's old town. The island is 2 kilometres (1 mile) long, and it has an area of 36 hectares (89 acres). The highest point on the island is a cliff that rises 121 metres (397 feet) above the sea.
The island is a popular excursion site in the Budva area. It has three bigger sandy beaches with a total length of 840 metres (2,760 feet), and numerous small beaches around the island, accessible only by boat.
Deer inhabit the uncultivated part of the island. The island is called Školj by locals, which comes from the word "Školjka" which means shell, because of its shape, while the youth refer to it as "Hawaii" island.