More than two million outdoor enthusiasts visit Fort Loudoun Reservoir each year. The reservoir is known for its bass fishing, boating, and birdwatching.

The wildlife viewing area is the best place to observe the seasonal bird population. Black-crowned night herons and osprey visit during the summer and late fall, and gulls migrate to the area in winter.

Fort Loudoun is connected by a short canal to Tellico Reservoir on the nearby Little Tennessee River. Water is diverted through the canal to Fort Loudoun for power production. The canal also offers commercial barges access to Tellico without the need for a lock. Barges passing through the Fort Loudoun lock carry half a million tons of cargo a year.