Folly Cove is a small inlet located on the northern end of Gloucester. It is known for its history of fishing, art, and diving. Folly Cove was home to a group of artists and designers who created hand-printed textiles in the 1930s and 1940s. The Folly Cove Designers, as they were called, produced original designs inspired by the natural beauty of the cove and its surroundings. Folly Cove is a popular spot for scuba diving, as it offers a variety of marine life and underwater features.

Folly Cove is on Washington Street (MA-127).