The Netherworld is an alternate dimension where the Demon Sorcerers were banished by the Immortals, leaving behind one portal per demon. Each of these portals can be located by getting the Pan'ku box to display the location. Theoretically, the only way out of this dimension is through each demon's respective portal; however, if a demon has been reduced to a spirit, that demon can move between the realms independently. Also, a banishing spell can send a demon to this place. These spells are cast onto whatever object is the symbol of the Immortal that originally banished the demon in question. After this spell is used, the portal is sealed permanently.

The background in this dimension is orange, and there is very little gravity, as shown by the floating rocks that the d

emons use to stand on. Bai Tza also states this dimension has little moisture and humidity, calling it a "bone dry pit". By the end of the series, Shendu, Bai Tza, Dai Gui, Tso Lan, Hsi Wu, Po Kong, Tchang Zu, Xiao Fung and Drago are all forever consigned to this realm.