In Palawan, Philippines, Honda Bay is fast becoming a target recreational site for curious domestic and foreign visitors. The general objectives of this resource assessment are to gather information regarding status of the marine resources in Pandan Island, and to provide recommendations for their sustainable use. Assessment was done using line intercept transect (LIT), fish visual census (FVC) and an imaginary transect belt for coral cover, fish, and macro-invertebrates, respectively. Average live coral cover around Pandan Island can be categorized as good (57%), with stations 7 and 1 and 2 categorized as excellent (76-100%) and fair (26-50%) conditions, respectively. Some 178 fish species were recorded in Pandan Island waters of which seven (7) highly target and 29 common commercial fish species were found. The estimated total reef fish biomass around Pandan Island is 588 mt/km2. A total of eight macro invertebrate (shells, etc.) species belonging to five family was found around Pandan Island. The study concluded that of these eight species, six are commercially important, Tridacnacro cea (taklobo), Tridacnasquamosa (taklobo), Hippopusporcellanus (taklobo), Trochusniloticus (topshell), Pinna nobilis (tarab), and Bohadschiamarmota (sea cucumber). Five of these species the T. crocea, T. squamosa, H. porcellanus, P. nobilis, and T. niloticus are listed as endangered species by International Union for Conservation of Nature.