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Lyme Regis is famous for the fossils found in the cliffs and beaches, which are part of the Heritage Coast - known commercially as the Jurassic Coast - a World Heritage Site. The Jurassic Coast stretches over a distance of 153 kilometres (95 mi), from Orcombe Point near Exmouth, in the west, to Old Harry Rocks, in the east. The coastal exposures along the coastline provide a continuous sequence of Triassic, Jurassic and Cretaceous rock formations spanning approximately 185 million years of the Earths history. The localities along the Jurassic Coast includes a large range of important fossil zones. The Blue Lias rock is host to a multitude of remains from the early Jurassic, a time from which good fossil records are rare.[5] Many of the remains are well preserved, with complete specimens of several important species. Many of the earliest discoveries of dinosaur and other prehistoric reptile remains were made in the area surrounding Lyme Regis, notably those discovered by Mary Anning (1799-1847). Significant finds include Ichthyosaur, Plesiosaur, Dimorphodon, Scelidosaurus (one of the first armoured dinosaurs) and Dapedium. The town now holds an annual Mary Anning Day. A fossil of the world's largest moth was discovered in 1966 at Lyme Regis.

The coast around Lyme Regis is subject to large landslips. This means that Jurassic age fossils are regularly exposed and can be found on the beaches, but also causes devastation to the town. One of the most spectacular landslips occurred on 24 December 1839, 3 miles (4.8 km) west along the coast in Devon belonging to Bindon Manor and known as "The Dowlands Landslip". About forty five acres of fields growing wheat and turnips were dislodged when a great chasm was formed more than 300 feet (91 m) across, 160 feet (49 m) deep and three quarters of a mile long. The crops remained intact on the top of what became known as "Goat Island" among the newly formed gullies. On February 3 1840, 5 weeks later, there was a second landslip nearby but much smaller than the former. This strange phenomenon attracted many visitors, and the canny farmers charged sixpence for entrance and held a grand reaping party when the wheat ripened. The area is now known as The Undercliff and is of great interest because of its diverse natural history.

In 2005, work began on a £16 million engineering project to stabilise the cliffs and protect the town from coastal erosion. The town's main beach was reconstructed and re-opened on 1 July 2006.

On the evening of 6 May 2008, a 400m (1,312ft) section of land slipped onto the beach between Lyme Regis and Charmouth. Local Police described the landslip as the "worst for 100 years". This has necessitated the diversion of the South_West_Coast_Path inland from Lyme Regis to Charmouth via the Lyme Regis Golf Course.

The town has a number of annual events, including the 'Lyme Regis Carnival and Regatta', the Lyme Regis Fossil Festival and Mary Anning Day. The traditional conger cuddling event takes place during Lifeboat Week. The carnival and regatta is an event which takes place over a whole week, during August and is organised by a committee of local volunteers. All proceeds from the week will be given to local good causes - especially those supporting the young and the old. The week-long summer programme includes outdoor movies, parades, games such as egg tosses, events such as rubber duck races on the River Lym, and fireworks.

Other events occur throughout the year and are publicised locally. The bonfire night spectacular includes torchlight procession, bonfire on the beach and a firework display. The Christmas Tree Festival has over 30 trees decorated by local organisations in Lyme Regis Baptist Church. An Easter bonnet parade takes place each year in the town on Easter Sunday. A May Day fete has stalls and entertainment from different Lyme groups. Thanks Giving Day has been held since Parliament decreed at the end of the English Civil War that there should be a day of celebration and prayer in Lyme to commemorate the end of the unsuccessful siege of Lyme by the Royalist forces, which was one of the longest sieges of the Civil War. It is celebrated in Lyme by dressing in clothes of the period and parading through the streets.