An inlet within Inverkeithing Bay on the northern shore of the Firth of Forth, Inner Bay lies a quarter-mile (0.5 km) south of Inverkeithing town centre. The port of Inverkeithing was established on this sheltered inlet, but activity here is much reduced, focused primarily on the ship-breakers yard at Jamestown. Thomas W. Ward's yard opened in 1923 to dismantle surplus ships after the First World War. It was here that many famous ships met their end, including the liners RMS Olympic, sister ship of the RMS Titanic, in 1935, RMS Mauretania (1960), MV Britannic (1961); HMS Mars (a warship launched in 1848, which served as a training ship in the Firth of Tay 1869 - 1929, when she was brought here to be broken up); the battleships HMS Rodney, HMS Revenge and HMS Nelson (1949); the aircraft carriers HMS Argus (1946), HMS Formidable (1953), HMS Glory (1961), HMS Pioneer (1954), HMS Implacable (1955) and HMS Theseus (1962).
Today, the Fife Coastal path curves around the bay.