Carrigaholt lies at the mouth of the Moyarta river, which flows into the estuary of the River Shannon about 15 km from the tip of the Loop Head peninsula and about 10 km from the resort town of Kilkee on the north coast of the peninsula. The village boasts a ruined castle that stood guard over the mouth of the Shannon and the local fishing pier.

Fishing is still continued in the village with a small number of boats delivering their catches to a local processing company. The village is also the local centre for the local farming community. The village has benefited recently from tourism, mainly provided by residents from Limerick some 110 km to the east. The village has two restaurants, a fast food take-away and four public houses, some of which offer live entertainment, particularly during the summer high season. There is a holiday caravan park located nearby.

A local business (Carrigaholt Dolphin Watch) offers boating trips to observe dolphins in the mouth of the Shannon River, home to one of the largest pods in Europe. The Carrigaholt Sea Angling Centre offers fishing packages for up to 8 fisherman at a time and runs a purpose built boat. Catches include ray, conger, bass, dogfish, tope, cod, pollock, hake and turbot. Other features include a beach suitable for swimming and watersports, two piers, and local village shops for food necessities.