Latham Bay is a bay on the Otago Harbour coast of the Otago Peninsula, New Zealand.
The bay lies within the city limits of the city of Dunedin, some northeast of the city centre. It forms a natural harbour for the settlement of Portobello, which lies on its shore, albeit one which forms extensive mudflats at low tide. The harbour's Quarantine Island sits directly opposite the mouth of Latham Bay, some to the northwest. The bay is in width and in length.
Portobello Road, the main road on Otago Peninsula, winds around the edge of the bay, linking central Dunedin with Portobello and other harbourside communities such as Macandrew Bay and Otakou.
The bay is bounded to the northeast by the Portobello Peninsula, which separates it from the larger Portobello Bay, and to the southwest by the small tidal island Puddingstone Island (also known as Pudding Island and Puddingstone Rock).