Souda Bay is a bay and natural harbour near the town of Souda on the northwest coast of the Greek island of Crete. The bay is about 15 km long and only two to four km wide, and a deep natural harbour. It is formed between the Akrotiri peninsula and Cape Drapano, and runs west to east. The bay is overlooked on both sides by hills, with a relatively low and narrow isthmus in the west near Chania.

Souda is a town and former municipality in the Chania regional unit, Crete, Greece. Since the 2011 local government reform it is part of the municipality Chania, of which it is a municipal unit. The municipal unit has an area of 22.007 km2 (8.497 sq mi). It is an important ferry and naval port at the head of Souda Bay.