Indian Beach is located in southern Carteret County at 34°41′16″N 76°53′29″W / 34.68778°N 76.89139°W / 34.68778; -76.89139 (34.687911, -76.891498), on Bogue Banks, a barrier island along the Atlantic Ocean. It is bordered to the west by the town of Emerald Isle and to the east by Pine Knoll Shores. To the north is Bogue Sound, separating the town from the mainland, and to the south is the Atlantic. The town consists of two sections, separated by the unincorporated neighborhood of Salter Path.

According to the United States Census Bureau, the town of Indian Beach has a total area of 1.5 square miles (3.8 km²), of which 0.58 square miles (1.5 km²) is land and 0.93 square miles (2.4 km²), or 62.05%, is water, consisting of portions of Bogue Sound.

As of the census of 2000, there were 95 people, 50 households, and 31 families residing in the town. The population density was 159.9 people per square mile (62.2/km²). There were 1,218 housing units at an average density of 2,049.9 per square mile (797.1/km²). The racial makeup of the town was 95.79% White, 3.16% Pacific Islander, and 1.05% from two or more races. Hispanic or Latino of any race were 2.11% of the population.

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