This survey-correlational study, conducted in January 2016, aimed at ascertaining the impact and prospects for the development of sustainable tourism in Northern Iloilo. Two hundred (200) randomly selected residents of selected municipalities from Northern Iloilo were utilized as participants. The cluster sampling method was used in the selection of participants. The Tourism Impact Questionnaire was utilized to measure the impact of sustainable tourism, while the Prospects for Sustainable Tourism was adapted to measure the level of viability of the prospects of sustainable tourism in Northern Iloilo. Data, frequency, percentage, mean, and standard deviation were employed as descriptive statistics, while the t-test, one-way ANOVA and Pearsons r were used as inferential statistics. Study results revealed the high impact of Northern Iloilo on the sustainability of tourism as perceived by the residents. Sustainable tourism in Northern Iloilo was found to have very high prospects for development. A positive and significant relationship existed between the assessed impact and viability of the prospects for development of the sustainable tourism in Northern Iloilo.