This paper explores conceptions of islands in Ancient and Imperial China. From at least the 3rd Century BCE, mainland Chinese culture regarded islands as sacred, unapproachable fairylands, home to the elixir of immortality. This inspired a trend for voyages in search of mythological sacred islands as well as a landscape architecture trend for constructing artificial islands in imperial palace gardens. Over time, Taoism came to associate islands with the home of the gods, and Chinese Buddhism came to associate islands with dragon kings. As China’s maritime activity increased, so, too, did fiction regarding islands of adventure. These conceptions of sacred islands and islands of adventure coexisted with the use of actual islands as places of political exile. By exploring island traditions in Chinese literature, this paper adds to our knowledge of how and why people throughout history have regarded islands and archipelagos as special. This paper also pursues a decolonial island studies by challenging some of the Eurocentric and imperialistic tendencies within the research field, which have led to a privileging of Western island metaphors and understandings.