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Panaon Island is a large island in the southeast of Sogod Bay offering excellent diving and stunning dive sites.

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Panaon Island, connected to the mainland by the Liloan Bridge, constitutes the longer flank of Sogod Bay and is more comfortably accessed by boat. Liloan lies at the northern part of Panaon Island which is connected to mainland Leyte by a bridge. This part of Sogod Bay offers an assortment of dives (both shallow and deep) as well as excellent opportunities for whaleshark watching from November to April. Liloan is also home to the Tabugon Fish Sanctuary (established in 1993) and Tagbak Marine Park.

The area's main attraction is the drift dive in the channel under the Liloan Bridge. It is an exhilarating and challenging dive in strong alternating currents (the place got its name from the local word for 'whirlpool'), with rich coral formations and many caves along the route. It is recommended for experienced divers only. Another long time diving favorite is Napantaw Fish Sanctuary with its huge gorgonians and excellent examples of black coral.

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