EX-Tropical Cyclone Olga is predicted to cross the Gulf of Carpentaria after achieving category 2 intensity and strike at Karumba.
The Bureau of Meteorology expects it will not reach Karumba until early Saturday morning, but has issued a Cyclone Watch for the area.
Abnormally high tides are expected to cause flooding along the Northern Territory coast and on islands between Bing Bong and the Queensland coast.
Minor flooding is also expected for the large area between Cape Shields in the NT and Burketown.
The flooding could be particularly devastating in the cattle country still recovering from flooding last year.