Settlements on it include Ajax Bay, New Haven, Port San Carlos, San Carlos on East Falkland and Port Howard and Fox Bay on West Falkland.
Inlets and bays on the Sound include: Fox Bay, Port Howard (West Falkland); Grantham Sound, San Carlos Water, Ruggles Bay (East Falkland) About 400 million years ago the land that became the Falkland Islands and Antarctica's Ellsworth Mountains, which had been part of Gondwana, broke from what is now Africa and drifted westwards relative to Africa.
As a result, the fold lines in West Falkland run almost south-west to north-east, parallel to the Sound.
Lafonia (the southern half of East Falkland), which is a much newer formation, has no folds.
It is believed that at times during the Pleistocene era, the seabed was some 46 metres (151 ft) lower than the present time–sufficient for the sound to be bridged.