The Iro is probably the most famous of all the wrecks in Palau and is a fantastic wreck dive; the wreck is considered one of the best wreck dives in the world. A Japanese freighter that was sunk in 1944, the wreck is covered in soft corals, clams, and other invertebrate.

The wreck lies at around 40 metres with the deck at around 30 metres. It is only suitable to experienced divers as there is some penetration and parts of the wreck are quite deep. As with all historic wrecks, divers should not touch any ammunition, as it could still be live. The kingposts are shallower at around 8 metres of water and are covered with corals. Divers can penetrate into the bridge and can view the crew quarters from there. Items such as old gas masks can sometimes be found in this area. The engine room is also penetrable and the railings and giant boiler are still visible.

Divers can explore the bow, which has a large gun sitting on a circular mounting. This has been covered with black coral trees whilst the deck is now covered in the remains of clams that were once attached to higher parts of the wreck. There are also mushroom corals and divers can find many different reef fish, shrimps, and other crustaceans around these.

The main cargo hold and the main kingpost are home to many anemones hosting anemone fish, as well as lionfish and more black coral trees. At around 30 metres, down the anchor chain, divers can see the torpedo damage on the starboard bow that caused the ship to sink.