Recreation Facilities in the town include the following:
- Pearse Brothers GFC which is located to the east of the town and recently underwent an expansion. A school playing field is also located on the Cootehill Road
- Ballybay Scouts camping area along Lough Major
- Ballybay/Deryvalley Outdoor Bowls Club all weather bowling green, opened in August 2006, with lights erected in 2008
- The Town Park at Lough Major, which includes walkways, a play ground, a juvenile playing pitch and angling facilities
- Ballybay Wetlands Centre, which is situated on the Dromore River to the west of Ballybay Town, a wetland site recognised as being a regionally important site for wintering migratory birdlife including whooper swan and siberian widgeon
Many of the above projects are linked by the Dromore Waterway.