Panquil Bay, an arm of Iligan Bay, is a bay in Mindanao in the Philippines. The bay forms the natural boundary separating the Zamboanga Peninsula from the rest of the island of Mindanao. It borders the provinces of Misamis Occidental, Zamboanga del Sur, and Lanao del Norte. The important cities and municipalities on its coast are Ozamis City , Tangub City , and Tubod , which is the capital of Lanao del Norte.