The vessel was carrying hundreds of people when it encountered trouble shortly after leaving Kyrenia on Sunday afternoon.
The privately operated FILOJET departed at approximately 12.30pm local time, travelling towards the Turkish port of Tasucu in Mersin province. According to authorities, the catamaran began taking on water around four nautical miles from Kyrenia before eventually overturning.
A total of 259 passengers and eight crew members were believed to have been aboard.
Rescue teams have so far brought 237 people to safety, while seven fatalities have been confirmed. The search continues for the remaining 23 people.
Dramatic images from the scene showed survivors gathered on the upturned hull, many still wearing life jackets, as rescue vessels moved towards the stricken ferry.
The emergency response has involved both northern Cypriot and Turkish authorities. Coastguard vessels were sent to the area along with helicopters and civilian boats, while additional search equipment has been brought in to assist crews looking for those who remain unaccounted for.
Authorities have not yet determined what caused the ferry to start taking on water.
