Los Osos serves as the entrance to Montaña de Oro State Park. Los Osos Valley Road reaches the coast at the south end of Estero Bay and continues south into the state park. Morro Bay State Park borders the northeast of the town. South Bay Boulevard travels through the middle of the park after it leaves Los Osos. Los Osos is also home to the Elfin Forest which sits on the southeast side of the estuary that sits between Los Osos and Morro Bay State Park.