Bay of Baku is a natural harbor of the Baku port and local yacht club, on the southern shore of the Absheron Peninsula and on the western shore of the Caspian Sea.
It has an area of 50 km² and a coastline of 20 km. The bay is bordered by Sultan Cape in the east, Shikh Cape on the south-west and the islands of Qum, Dash Zira and Boyuk Zira in the south and south-east. These islands are part of the Baku Archipelago which lies mostly within the bay. These characteristics make it an ideal place for a harbor. There lies Baku Boulevard on the seashore. During severe storms with high winds, the height of the waves in the bay can reach 1–5 m.