Route 1 comes from Monterey and Cambria to the north, and San Luis Obispo to the South. Route 41 comes from Atascadero to the east.
The nearest airport is the San Luis Obispo County Regional Airport, with flights to San Francisco, Phoenix and Los Angeles. 
Amtrak provides train service through their station in San Luis Obispo. The Pacific Surfliner arrives in San Luis Obispo at 1:00PM from Los Angeles, and 8:30PM from LA and San Diego, and departs SLO at 6:55AM and 1:35PM(weekdays)/1:55PM(weekends) for Los Angeles and San Diego. The Coast Starlight #11 comes from Seattle at 3:07PM, and departs at 3:20PM for Los Angeles. #14 comes from Los Angeles at 3:22PM and departs at 3:35PM for Seattle. Local bus service from SLO can take you to Morro Bay.
Greyhound serves San Luis Obispo. Route 12 of the Regional Transit Authority comes from San Luis Obispo. Route 15 comes from Cambria.
Downtown Morro Bay can be traveled on foot. The other areas will require a car. Morro Bay Transit runs hourly bus service throughout the city, weekday 8:30am to 7pm, Saturday 9am to 4:30pm. From Friday to Monday in the summer a free trolley shuttle runs the length of the Embarcadero (the main street along the waterfront) from larger parking areas at Morro Rock to the north of the bay and city marina at the south end of the Embarcadero.
The Embarcadero is the main tourist area and lines the east side of the bay. It is a great walking experience along a working port and eco-tourist destination. A variety of marine life is here, from sea otters to sea lions, and the town is a declared bird sanctuary. Excellent deep sea fishing originates at the north end of the Embarcadero. A public park and boat launch are at the south end. RVs and mobile homes may day-park at either end. There is a giant chess board in the middle of Embarcadero Rd.
Hike Black Hill.
Popular surfing locations are to the north on easy access beach from free public parking and across the harbor entry to the north end of the sand spit that forms the west edge of the bay.
One can rent a kayak and explore the south part of the bay, which is one of the larger estuaries on the west coast. A favorite local tradition is to kayak from Morro Bay State Park or Embarcadero docks to the massive sand spit for a picnic.
To the north of town is the Morro Strand State Beach which offers additional surfing possibilities and many locals with their dogs in a fairly open uncrowded setting. To the south of the town is Morro Bay State Park which includes an impressive public golf course set in pines on challenging hillsides with amazing views to the ocean and bay. A newly renovated public campground is available.
Shops along the Embarcadero cater to the tourist trade with art, t-shirts and the like.
Dorn's Original Breaker's Cafe (801 Market Ave.), right above the Embarcadero, has great views, and is both a popular and reliable choice, especially for older patrons.
The Outrigger Restaurant (833 Embarcadero) makes for a great dining experience and plays host to many out-of-towners as well as locals.
Delicious french dip sandwiches are hand-carved in front of you at the Hofbrau restaurant (901 Embarcadero), which serves up German fare as well as the popular waterfront fish and chips and clam chowder options.
Drop by The Coffee Pot (1000 Front Street) has a friendly, welcoming atmosphere and old-time roadside breakfasts and lunches. It's a can't miss treat. Be sure and check out the owner's book, Double Luck - Memoirs of a Chinese Orphan, an account of his early life as an orphan growing up in China.
For an amazing carne asada burrito and authentic experience, head to Taco de Mexico (980 Main Street) for lunch. Referred to by locals simply as "Tacos De," this popular spot is easy, fast, and inexpensive, though lines can be out the door around noon.
If you are looking for an escape from the often tourist-filled Embarcadero dining scene, follow Main Street to North Morro Bay. There you will find Lolo's Mexican restaurant (2848 Main Street), a great, family-friendly Mexican eatery with the best chips and salsa around (their salsa is bottled and sold in local grocery stores as well as in the restaurant). Another restaurant to go to on the north side of the city is Taco Temple (2680 Main St.)
Nearby and usually only open for dinners is the small, quirky, and charming Beach House Bistro (2770 Main St.), with a wide variety of gourmet fare, great specials, and awesome wait service. Perfect for a romantic date after a day of surfing.
For additional waterfront dining, check out the Bayside Cafe (10 State Park Road), located at the local Marina. Offering outside and inside seating and a view of kayakers, this restaurant is great for small family gatherings or long conversations with friends. Try the catch of the day sandwich, which is almost always salmon cooked to perfection. Their mud pie is especially good.