Molasses Reef lies to the southeast of Key Largo, within the Key Largo Existing Management Area. This area is immediately to the east of the John Pennekamp Coral Reef State Park. The reef is situated within a Sanctuary Preservation Area (SPA).

Historical Incident: On August 4, 1984, the motor vessel Wellwood, a 122-meter freighter carrying pelletized chicken feed, ran aground on Molasses Reef. The grounding caused significant damage, including the destruction of 5,805 square meters of living corals and injury to 75,000 square meters of reef habitat. The US Coast Guard removed the vessel, and the National Oceanic and Atmospheric Administration (NOAA) coordinated restoration efforts. They placed reef modules in the injured areas to provide a substrate for new coral colonization. Biological restoration involved transplants from Pickles Reef and facilitating coral larval settlement. NOAA settled a claim worth $6.275 million with the responsible parties, the Wellwood Shipping Company (owner of the vessel) and the Hanseatic Shipping Company (shipping management company), by 1986.

Diving and Snorkeling: Molasses Reef is a popular scuba diving and snorkeling location. Numerous dive sites are marked by mooring buoys. One notable site, buoy #7, is variously referred to as the Winch Hole, Windlass Wreck, or simply The Winch. Here, you’ll find the large mechanical winch from the Slobadana, a 170-foot wooden-hulled schooner that sank in 1887 after only three years in service. Alongside the winch, various mechanical artifacts are scattered in the nearby area. The presence of large coral formations with relatively deep channels makes this a captivating dive location.

There are a couple of attractions in this site:

1. Winch hole: a popular dive site on Molasses Reef in Key Largo, Florida, named after a large winch that sits in the sand at a depth of 25–32 feet. The winch is believed to have come from the Austrian sailing ship Slobodna, which ran aground on the reef in 1887 while carrying 4,500 bales of cotton. The Winch Hole is located at buoy #7 on the reef, which is marked by mooring buoys
2. Spanish anchor: a captivating dive site located just a short swim from the Aquarium. The site derives its name from an old 8-foot-long anchor that lies embedded in the coral at the base of the mooring. This coral-encrusted anchor adds historical intrigue to the underwater landscape. Large coral heads and Barrel Sponges create a vibrant habitat, attracting numerous small schooling fish. Additionally, the site’s proximity to the deeper waters of Molasses allows larger marine life to pass through the area. Spanish Anchor is accessible at a depth of 25–30 feet, making it an ideal spot for divers of all levels. Whether you’re a beginner or an experienced diver, this site offers plenty of willing subjects for underwater photographers. With the Aquarium on one side and Molasses Deep on the other, Spanish Anchor promises a diverse array of fish life and captivating underwater exploration
3. Aquarium: This popular spot on Molasses Reef teems with fish and epitomizes the spur and groove formations that make this reef so amazing to explore. Schools of fish—including Grunts, Snappers, Schoolmasters, Parrotfish, and Sergeant Majors—grace the reef. The proximity to the Coral Canyons and the Spanish Anchor adds to the allure. Whether you’re a new diver or an experienced one, the Aquarium offers a delightful underwater experience. With a maximum depth of 25 to 30 feet, you’ll have ample bottom time to explore and don’t forget to bring your camera along! 

The route depends on the mooring ball the charter takes. Unless you are doing a drift dive on the deep part of this reef, you will be required to come back to the same point where you started the dive.

Conditions are for usually really good at this site. Visibility can go up to 100 ft with a typical range of 60 to 80 feet. Currents are mild in the shallow part of the reef and tend to increase in the deep part.