The Panama Bay (Spanish: Bahia de Panamá) is a large body of water off the coast of southern Panama, at 8°50′00″N 79°15′00″W / 8.8333333°N 79.25°W. It is a part of the greater Gulf of Panama.
The Panama Bay is considered to be in an eutrophic state by the World Resources Institute. This is a result of ongoing pollution from agricultural and livestock operations. Urban wastewater from nearby Panama City has also contributed to the eutrophication of Panama Bay.