Tufi is a town located on the south eastern peninsula of Cape Nelson, Oro Province, Papua New Guinea. Tufi is located on one of many rias, or drowned river valleys, locally referred to as 'fjords', on Cape Nelson surrounded by many uncharted reefs. The area is also famous for its production of tapa cloth.
Tufi was an Australian New Guinea Administrative Unit (ANGAU) Station during World War II. The United States Navy built an PT boat advanced base at Tufi which commenced operations on 20 December 1942 to support the Battle of Buna–Gona. Two PT boats, PT-67 & PT-119 caught fire while refueling at the bases wharf and sank on 17 March 1943 at the wharf along with the Australian army vessel AS 16. The PT boat base was relocated to Morobe on 20 April 1943.