Queensland Health say a young family involved in a dramatic accident on the Captain Cook Highway over the weekend are 'in a stable condition'.

Police are investigating the crash which occurred near Ellis Beach on Saturday afternoon.

Authorities say the incident occurred at around 1.40pm about 10 kilometres north of Ellis Beach when a silver ute and white station wagon collided head-on.

The station wagon was carrying a two-year old girl, four-year old boy and 33-year old mother.

All three are currently recovering at Cairns Base Hospital.

Senior Constable Russell Parker said the drive from Cairns to Port Douglas can be dangerous.  

"That section of the Captain Cook Highway is a very, very busy road," he said.

"It's a well-known tourist drive and carries a lot of traffic, especially on weekends.

"It's a windy, scenic drive and by its very nature can be hazardous, especially in wet conditions.

"As such, we need to take extreme care which may mean slowing down and driving to the prevailing conditions."

Queensland Health could not confirm what injuries victims' had sustained at the time of publication.

It's believed the man driving the ute sustained abdominal injuries in the accident.