Morro Bay is a coastal city located in San Luis Obispo County, California, USA. It is known for its stunning natural beauty, charming harbor, and iconic Morro Rock. The city population was 10,757 as of the 2020 census, up from 10,234 at the 2010 census. The town overlooks Morro Bay, a natural embayment with an all-weather small craft commercial and recreational harbor.