Souda Bay is one of the most strategically important NATO anchorages in the Mediterranean. The inlet is 15km long and in some areas, 16km wide, making it the largest harbour in the Mediterranean. It is also one of the most protected from all winds--deceivingly so, because very often it is not known how bad the weather is outside the harbour. During World War II, heavy German aerial bombardment sank many British ships here.

Souda (Greek: Σούδα) is a town and municipality of the Greek island of Crete, in the prefecture of Chania. It is an important ferry and naval port at the head of Souda Bay.

Souda is 6.5 km to the east of central Chania, although the area in between is mostly built-up. The town is a relatively new settlement, built on what used to be salt beds and marshland. The Turks knew the area as 'Tuzla', their name for salt-beds. In the 1870s, they began to build a new settlement here which grew as the port expanded. Souda Bay is one of the deepest natural harbours in the Mediterranean and is easy to defend.

Now Souda is the arrival point for ferries from Pireaus. There is also a NATO naval base located in Souda and across the bay, with military accommodation and hospital in the town. Much of the command, particularly for US forces, is found across the bay on the Akrotiri. A grain silo overshadows the centre of town. Perhaps because of its nature as a departure point and military town, it is not popular with tourists and can appear seedy and threatening. However it is well-served with shops of all types and some renowned fish restaurants in the old centre.

The Allied war cemetery, mostly of soldiers from World War II, is found in Souda on the shore. There are 1,527 graves, mostly British with 447 New Zealanders and 197 Australians. Buried in the cemetery is the archaeologist John Pendlebury. Pendlebury was the curator at Knossos for the British School in Athens and had been continuing excavations in Crete until the war. He was executed by the Germans in 1941 whilst working for British Intelligence.

Souda is also the name given to one of the islands at the mouth of Souda Bay, heavily fortified by the Venetians and Turks.

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