Myrtos Beach (Cephalonia Island, Ionian Sea, Greece) represents a pocket beach with strong touristic, economic and natural interest. In this research, the morphodynamic behavior of the coastal area (e.g., hydrodynamic and sedimentary state, morphology, orientation, etc.), the current wave conditions (extreme and dominant waves, wave exposure), and also external factors, such as human impact and the geotechnical condition of the wider area, are examined. Short- and medium-to-long-term analysis took place, such as mapping, sediment analysis, wave/wind analysis, numerical modeling, and satellite monitoring, in order to identify the dynamic forcing parameters related to geomorphology, sedimentology, and hydrology that prevail in the area. Additionally, the intense tectonics, the karstified limestones, and the steep slopes of the cliffs in combination with the frequent seismic events on the island set up a geotechnically unstable area, which often cause landslides on the beach of Myrtos; these supply the beach with a large amount of aggregates, constituting the main sediment supply. Wave exposure forcing conditions, longshore–rip current direction, and other hydrodynamic processes are stable with high values in the area, causing notable sediment transport within the bay boundaries. As a result, at Myrtos Bay there is a dynamic balance of the natural system, which is directly affected by human interventions. Taking also into consideration that Myrtos is one of the most famous beaches in Greece and one of the main attractions of Cephalonia Island with thousands of visitors every year, beach management must be focused on preserving the natural system of the coastal area.