Sheepshead Bay is a bay separating the mainland of Brooklyn, New York City from the eastern portion of Coney Island, the latter originally a barrier island but now effectively an extension of the mainland with peninsulas both east (the neighborhood of Manhattan Beach) and west (the neighborhood of Seagate . Its mouth is about a mile (1.6 km) southwest of Marine Park, Brooklyn. The area is part of Brooklyn Community Board

The bay itself was originally the easterly entrance to Coney Island Creek but filling of the central part of this waterway during the 1930s in conjunction with construction of the Shore Parkway portion of the Belt Parkway eliminated access to the creek. At the same time the bay was widened at its western end, deepened and bulkheaded. It is now the home of recreational fishing fleets. At the Western end of the bay, there is a Holocaust memorial park, which is used throughout the year for commemorative events.

In the last decade of the 20th century, a real estate boom brought the reopening of the landmark Lundy Brothers seafood restaurant, which closed again in 2007, as well as the opening of ex-Soviet-themed restaurant/nightclubs such as Paradise and Baku Palace. The waterfront also experienced a growth of condominium developments. Emmons Avenue, the northern shoreline street along the bay, has piers with an active seafood market and tour boats.