Kapalai is a small, picturesque island located in the Sulu Sea off the coast of Sabah, Malaysia. It is known for its stunning coral reefs and crystal-clear waters, making it a popular destination for snorkeling and diving enthusiasts. The island is primarily inhabited by a small community of sea gypsies, who rely on fishing and tourism for their livelihoods. The island features a unique resort built on stilts over the water, offering visitors breathtaking views and direct access to the ocean. Kapalai is often visited as part of a trip to nearby islands, such as Sipadan and Mabul, which are renowned for their rich marine biodiversity.