Panay Gulf is an extension of the Sulu Sea, reaching between the islands of Panay and Negros. The gulf contains the island-province of Guimaras and extends into the Santa Ana Bay between Panay and Guimaras and into Gumarias Strait, between Guimaras and Negros. Guimaras Strait connects Panay Gulf with the Visayan Sea.

Iloilo City is the busiest port on the gulf, which is a major route used by ships plying the areas between Iloilo City, Bacolod City, and Zamboanga further to the south.