Lake Lorraine is a census-designated place (CDP) in Okaloosa County, Florida, United States. The population was 7,142 at the 2020 census, up from 7,010 at the 2010 census. It is part of the Crestview–Fort Walton Beach–Destin, Florida Metropolitan Statistical Area. It carries a Shalimar postal address and zip code. Lake Lorraine was originally a fresh-water body, but at some point in the 1990s the narrow sandbar that separated it from the Choctawhatchee Bay was breached and the former drainage channel to the tip of Black's Point became blocked by silt.