Canada's 'most beautiful village' is a tiny coastal spot with cozy cafes and quaint cottages

When you're dreaming about the perfect coastal escape — one with red-sand shorelines, waterfront dining, and streets lined with colourful cottages — you might not immediately think of Canada. However, there's a quaint, cozy corner the country that was just ranked among the world's "most beautiful" villages, and it's not hard to see why.

Tucked along the southern coastline of Prince Edward Island, there's a little gem that's turning heads around the world. Victoria-by-the-Sea sits about half an hour from Charlottetown, hugging the Northumberland Strait with views that seem to go on forever.

This spot is tiny — home to roughly 150 people and covering just 1.4 square kilometres. But what it lacks in size, it makes up for in charm. With fishing boats bobbing in the harbour, heritage buildings painted in cheerful shades, and an atmosphere that feels as cozy as it is quaint, calling it a "hidden gem" feels like an understatement.

This isn't a new discovery, though. The settlement dates back to 1819, when James Bardin Palmer, a lawyer who'd immigrated to the island, mapped out its streets. Before long, schooners were leaving its port loaded with potatoes, eggs, and grain bound for markets across the Atlantic. Steamboats used to carry daytrippers from Charlottetown, who'd come to enjoy the seaside air.

When the Trans-Canada Highway was rerouted in the 1950s, according to Welcome P.E.I., the village quietly stepped out of the spotlight. These days, it's found a new vibe — one where historic buildings have been reimagined as studios, cafes, and shops, and where the focus is firmly on P.E.I.'s natural and cultural offerings.

The food scene here is all about what's local and fresh. At the Landmark Oyster House, you'll find oysters and seafood dishes that celebrate the island's coastal bounty, while the Lobster Barn Pub & Eatery serves up satisfying classics like lobster rolls alongside cold drinks on the patio.

And, if you have a sweet tooth, Island Chocolates is a must, with handmade treats that have been a local favourite for years.

Culture thrives here too. The Victoria Playhouse has been putting on productions since 1915, making it one of P.E.I.'s longest-standing theatres. It still draws crowds for its seasonal shows. Around the village, you'll also find working artists' studios and galleries displaying everything from ceramics to paintings inspired by the surrounding landscape.

The beaches are a major draw, known for their distinctive red sand and shallow, warm waters that are ideal for swimming or long walks when the tide's out.

If you're looking to get out on the water, By the Sea Kayaking offers rentals and guided experiences, including a clam-digging tour where you can harvest your own clams and then sample fresh chowder prepared on the beach.

Don't miss the iconic lighthouse, either. It's open to visitors and houses both the Victoria Seaport Museum and the Keepers of the Light exhibit, which tells the story of the area's maritime heritage. Climb to the top for sweeping views of the harbour and the coastline stretching in both directions.

Unsurprisingly, all of this charm hasn't gone unnoticed. Earlier this year, Forbes — in collaboration with Unforgettable Travel Company — included Victoria-by-the-Sea on its list of The World's 50 Most Beautiful Villages. It was the only Canadian location to make the cut, landing at number 23 and beating out spots in Switzerland, Denmark, Mauritius, and Germany.

In their write-up, Forbes highlighted the village's "pastel-coloured cottages" and "sweet-smelling chocolatiers," noting that "the smell of fresh lobster drifts from artsy harborside cafes—while kayakers paddle the red-sand coast of the Northumberland Strait."

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