The Islands Restaurant is situated in the former Hanalei Hotel, now called the Crowne Plaza. This once-elaborate mid-century Polynesian restaurant was designed by George Nakashima along with Hendrick & Mock Architects, starting in 1964. It had an A-frame entrance from the hotel's courtyard, elaborate water features and lush surrounding landscaping, and was thoroughly and richly decorated inside. The restaurant featured lovely carved railings throughout, large glass float lights, and dramatic clam shell fountains. Some of the tikis here were salvaged from Steve Crane's Luau in Beverly Hills.

Over the years, remodels of the restaurant (and surrounding hotel) gradually stripped the restaurant of its defining features. In November 2006, a six-month renovation of the restaurant began, which removed many of the waterfalls, fountains and other water features, along with nearly all of the tiki artifacts. The end result is now a fairly generic hotel restaurant, though some decor in the hallway outside remains intact.

*NOTE: In the beginning of the pandemic the hotel was contracted by the city to house homeless Covid victims and this restaurant appears to be temporarily, if not permanently closed since @2020 to the public. Fences and security have been put up and those not registered to stay here are turned away.