12 Unique Underwater Wonders in Oceania for the American Diver

3. The Blue Hole, Palau

Palau consistently ranks high among global diving destinations, and its Blue Hole is a prime example of why. This natural underwater sinkhole offers an unforgettable descent through a vertical shaft into open caverns suffused with dancing rays of sunlight. The Blue Hole’s entrance sits atop a sheer coral wall, letting divers float down past whips of soft coral and massive sea fans. Further exploration reveals dramatic overhangs and resident reef sharks cruising the perimeter—always a hit with underwater photographers and adventure-seekers. The feeling of weightlessness in such a vast, cathedral-like space is often described as surreal. Beyond the Blue Hole itself, Palau’s surrounding waters are filled with healthy reefs and drift dives teeming with pelagic species. For American divers seeking a combination of geological drama and thriving marine life, this spot delivers excitement at every turn.