Daphne Island (Isla Daphne) is a satellite volcanic cone located north of Santa Cruz island. The crater floor is an important breeding site for the blue-footed boobies. The presence of these sea birds makes this an exceptional island to visit. Daphne Island is famous for the scientific investigation led by Peter and Rosemary Grant on the finches’ population, one of the most important studies on the field that support Charles Darwin’s theory. Scientists have captured and banded each of the island's finches, monitoring the birds in an attempt to earn a greater understanding of their lives.

The cliff shore of the island is home for sea lions, pelicans, blue-footed boobies and tropic birds. In addition, large schools of fish can be observed from the zodiac rides.

Nearing the crater rim red-billed tropicbirds nest in the cliffs. These elegant birds with long white tail feathers and a coral-red bill, nest in the over hanging ledges and crevices of the steep slopes. Magnificent frigatebirds build their nests in the little vegetation that occurs on the island's slopes and near the crater rim. Finches, masked boobies, short eared owls and Galapagos Martins are also visible.