Situated between the popular resort towns of Bethany Beach to the north and Fenwick Island and Ocean City to the south, Fenwick Island State Park is a relaxing escape from the summer crowds. This three-mile stretch of barrier island is a playground of sand, surf, and sun along Delaware's Atlantic coast.

Before the area became a park, the dynamic forces of nature constantly changed the narrow strip of barrier dues between the Atlantic Ocean and Little Assawoman Bay, keeping the area wild and undeveloped. The area that is Fenwick Island State Park remained largely undisturbed, even as the towns of Bethany Beach and Fenwick Island were established. In 1926, a statewide survey classified the park area as public lands, which were soon assigned to the state Highway Department. Later, during World War II, the park lands were used as part of Delaware's coastal defense system. A concrete observation tower from the war era still stands near the northern boundary of the park.

In 1966, the property was assigned to the State Park Commission as a southern section of Delaware Seashore State Park. The area was renamed Fenwick Island State Park in 1981, and is now managed in conjunction with Holts Landing State Park, on the nearby Indian River Bay.