It includes the Caribbean Sea , its islands ( more than 7,000 islands , small islands and cays , most of them surrounding the sea ) , and the coasts of north South America and east Central America . The Caribbean is a region consisting of the Caribbean Sea , its islands ( most of which enclose the sea ) , and the surrounding coasts . The region is located southeast of the Gulf of Mexico and North America , east of Central America , and to the north of South America .