Kumarakom is home to a wide variety of flora and fauna. Kumarakom Bird Sanctuary is a noted bird sanctuary where many species of migratory birds visit. The Vembanad Lake, the largest backwater in Kerala, is habitat for many marine and freshwater fish species and it teems with Karimeen (Pearl spot also known as Etroplus suratensis) shrimp (Metapenaeus dobsonii) common name Poovalan chemeen. The bird sanctuary extends over 14 acres (57,000 m²), and came into existence following preservation efforts from the government. It is a very beautiful place to live. It is a major tourist attraction.

Kumarakom has a wide variety of houseboats and is well known throughout the world for houseboat experience. They are used only for tourists these days. A separate boat known as Kettuvallam is used by the people to go fishing or to transport goods. Apart from these, there are elegant special boats like Kochu-odi Vallam, Odi-Vallam, Iruttukutthi Vallam, Churulan Vallam and Chundan Vallam(Snake Boat), which take part in the boat races around Onam time. More than 1000 oarsmen in boats of different sizes and shapes will participate in this event. Even though Snake Boats participate in this race, the importance is given here is for iruttukuthi, in which about 50 oarsmen row. The Kumarakom boat-race is conducted in the big canal in the centre near the market. The Sree Narayana Ever Rolling Trophy will be given to the winner at the end of the day.[4] There is a private sailing club in Kumarakom, located on the shore of the Vembanad lake.