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Devil's Bayou is a swampland in Louisiana and the hideout of the evil Madam Medusa, her henchman, Mr. Snoops, and her pet-sidekicks, Brutus and Nero. They also kidnap the poor orphan, Penny, and force her daily into an underground pirate's cave to search for the rare diamond, the Devil's Eye. Medusa's riverboat is located here and is her main hideout and where she keeps Penny when the latter is not looking for the Devil's Eye. The Devil's Bayou is inhabited with many other animals that are minor characters of the film, such as Evinrude, a dragonfly who mans a leaf boat.

Devil's Bayou also appears in the villains tournaments, as one of the hideouts of the villain alliances.

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