The $165,000 Port Stephens Council project will see a new parking bay established near the existing car park and play equipment off Marine Drive.

Construction is set to wrap up in four weeks and is part of the council's capital works program.

"When it is finished, the car park will improve pedestrian safety," capital works section manager Greg Kable said.

"We are also building a fence between the car park and the play equipment to stop the kids from running out into traffic."

The park area and beach access point at Fingal Bay is often overcrowded in summer as tourists and residents struggle to find a parking spot.

Mr Kable said the extra car parks will alleviate the problem and, more importantly, make it safer for pedestrians to navigate the area.