At the northeast corner of the lake is another trail junction that leads to Observation Peak, which can be seen from the meadow. The forest surrounding this area and the peak itself burned during the 1988 fires, and much of the forest remains as standing skeletons. Only occasional trees along the margin or small islands of untouched trees remain. The hike up to Observation Peak provides excellent views of Cascade Lake and, in the distance, Hayden Valley. As the trail continues around the south and west of the summit, a hiker will also get views of Grebe Lake.
Cascade Lake is a popular and easy destination for fishing.
This 36-acre lake is only 27 feet deep but contains a good population of cutthroat trout. It also is considered to be the only lake in the Yellowstone drainage to have grayling. These meadows usually are wet, mucky and mosquito-ridden in the spring but are more accessible in late summer and early fall. The Bureau of Fisheries operated a fish hatchery on the eastern end of Grebe Lake from 1933 until the mid-1950s. This hatchery stocked most of the lakes in the area, the majority of which previously were considered barren offish.