Matthew Flinders climbed Prospect Hill when navigating the North Coast of Kangaroo Island to determine his bearings in 1802. Visitors can now climb this steep sand hill via steps. Views from the top include panoramic views of Pelican lagoon and Pennington Bay.

The Prospect Hill Stairs and lookout were upgraded in 2018/2019 and formally opened by Senator Anne Ruston in September 2019. The project was funded by the Federal Government's Building Better Regions Fund ($750,000), the State Government's Open Spaces Program ($125,000) and Kangaroo Island Council ($125,000). The steps were constructed using stainless steel fittings and fibre reinforced polymer stairs and structural members.