If you are looking for a trail close to Bellingham that earns its distance without overwhelming your evening or your weekend, Two Dollar Trail in Larrabee State Park is worth putting on the list. The 3.4-mile out-and-back route is less trafficked than the main Fragrance Lake Trail, runs past a waterfall, and finishes at the north end of Fragrance Lake with views of Bellingham Bay and the San Juan Islands visible through the trees along the way.
What the Trail Is Like
The first half mile of Two Dollar Trail climbs switchbacks before the grade eases into a long, largely flat section through dense forest. The switchbacks are the most cardiovascularly demanding part of the route, and getting past them unlocks 1.8 miles of more relaxed terrain that rewards the early effort. Ferns line the trail in several spots and grow tall enough in summer to create a genuine tunnel effect, with fronds reaching head height on either side of the path. Kids who are old enough to appreciate the scale of the vegetation tend to find it genuinely exciting, the kind of immersive greenery that makes a forest feel like its own world.
The understory is a mix of maple, western red cedar, and big-leaf maple, with the kind of filtered afternoon light that makes the forest feel a world away from downtown Bellingham even though you are only about eight miles south on Chuckanut Drive. The forest canopy here is mature enough that the trail stays noticeably cooler than exposed routes on hot summer afternoons, which makes it a particularly good choice during the current heat advisory week when a shaded walk is more appealing than an open hillside scramble.
A waterfall appears roughly midway through the hike. It is not a dramatic cascade, but it is a reliable feature through the summer season, fed by seeps and small drainages in the hillside above the trail corridor. The waterfall gives you a natural reason to stop, take a breath, and appreciate the sound of moving water in an otherwise quiet forest. Fragrance Lake itself is a quiet, subalpine-style lake at the top, ringed with vegetation and popular with picnickers who make the climb on the main Fragrance Lake Trail. Two Dollar Trail arrives at the lake's north end, which sees less foot traffic than the main approach and gives you a more private arrival at the water's edge.
One navigation note worth taking seriously: Two Dollar Trail is not marked where it meets Fragrance Lake. If you are not paying attention to which direction you came from when you emerge at the lake, it is easy to accidentally join the main Fragrance Lake Trail on the return and end up walking to the wrong parking lot, which is both inconvenient and adds unwanted distance at the end of a hike. Take a moment when you arrive at the lake to note a landmark at your exit point so the return route is unambiguous.
Getting There and Practical Details
From Bellingham's Fairhaven neighborhood, take State Route 11, Chuckanut Drive, south for 5.2 miles. Turn left on Highline Road, which becomes Cleator Road. The trailhead is 0.76 miles from the Interurban Trail parking lot. Dedicated parking at the Two Dollar trailhead fits about six cars, which means it fills quickly on weekends. If that lot is full, parking at the Interurban Trail and hiking up Cleator Road adds some uphill distance but keeps the experience intact. Be aware of vehicles driving down Cleator Road if you are walking up on the roadway shoulder.
A Washington State Discovery Pass is required for parking. The pass costs $30 annually or $10 for a single day and covers access to hundreds of state recreation sites across Washington, making it worth the annual fee if you use Larrabee and other state parks regularly. The trail is open year-round, though slick rocks in the wet season require caution, particularly on the switchback section where wet basalt can be genuinely treacherous after rain. In summer, the footing is firm and the trail drains well.
Dogs are welcome on leash. The switchbacks at the start are the most demanding section for younger children, but kids who are comfortable with moderate terrain will likely enjoy the fern tunnels and the lake payoff at the top enough to make the climb worthwhile. Plan on roughly two hours for the round trip if you skip the loop around Fragrance Lake, or add another 30 to 45 minutes if you want to circle the lake before heading back down. Bringing a snack to eat at the lakeside is a good call, particularly if you are hiking with children who need a motivating reward at the turnaround point.
Larrabee State Park: A Bellingham Fixture
Larrabee State Park was Washington's first state park, established in 1915 from a donation by the Larrabee family, and it remains one of the most beloved pieces of public land in Whatcom County. It covers nearly 2,700 acres along the Chuckanut shoreline and extends inland across a range of terrain from saltwater beaches and tide pools at sea level to forested ridgelines several hundred feet above the water. The park encompasses multiple trailheads, a campground with both tent and utility sites, tidepool exploration areas on the rocky shoreline, and the Fragrance Lake basin.
Two Dollar Trail connects into the broader Larrabee State Park trail network, which means experienced hikers with more time can extend the outing significantly. The Interurban Trail runs north toward Bellingham and south toward Bow and can be combined with the Chuckanut Trail system for longer loop options that cover substantially more elevation and terrain. If the 3.4-mile Two Dollar out-and-back is not enough, the park infrastructure supports considerably more mileage without ever getting back in the car.
The trail is at its best right now. Summer brings dry, firm footing and the full green canopy that makes the fern sections truly memorable. Head out on a weekday morning or evening if crowds are a concern; weekends at Larrabee attract significant traffic and the small trailhead parking area fills early, sometimes before 9 a.m. on busy summer Saturdays. For current conditions and trail closures across Larrabee and other Whatcom County outdoor areas, check recent road and trail updates before heading out.
