Caneel Bay is a bay and adjacent locality in Sydney, New South Wales, Australia. The locality is within the suburb of Avalon Beach. The bay lies adjacent to the suburbs of Avalon Beach and Palm Beach in the norh west of Pittater.

Environment: The bay has the largest stand of mangroves and sea grass beds in Pittwater. The Bay is also a fish nursery important to Pittwater and nearby coastal waters. 116 species of birds have been recorded as having been in Careel Bay. Some of these birds, from East-Asia, use Careel Bay as a stop off area. The Federal Government and Australia people are committed to a number of agreements to protect theses birds and their habitat, including the China-Australia Migratory Bird Agreement and the Japan-Australia Migratory Bird Agreement agreements