Dream Island was the main prize for the winner of Battle for Dream Island.
It is located next to Goiky, the main area where the (season 1/2) characters reside. Dream Island is described as a "square mile of paradise". It has a 5-star hotel, a casino, 6 restaurants, robot servants, and the winner can even choose who is allowed to visit Dream Island and who is not. It was won by Firey, but then bought by Leafy, who used a paper sheet from the Box of Paper Slips to pay for it. Two versions of it were "rebuilt" in "Zeeky Boogy Doog".
In "Take the Plunge/Part 1", the Announcer tells the contestants about Dream Island and offers them a chance to win it in a contest.
In "Return of the Hang Glider", Firey won Dream Island, beating Leafy and Bubble in votes. Firey let everyone except Leafy in. Angry about this, Leafy bought Dream Island from the Announcer, and this was considered stealing by the other contestants.
It was later "rebuilt" in "Zeeky Boogy Doog" by Team No-Name, but soon destroyed by Bomby, causing W.O.A.H. Bunch to win by making a poorly-made farm-themed island with animals made out of cardboard, paper, tape rulers, etc.
Technically, W.O.A.H Bunch's island is the new Dream Island, and therefore the 1st place prize for Battle for Dream Island Again.
- In "Yeah, Who? I Wanna Know", the Yoylemap said "Dream Island", meaning that if Pin had not ripped up the Yoylemap into pieces, they could possibly have found Dream Island again.
- However, it might possibly be in a different location since Leafy bought it.
- Dream Island is worth (at most) $1,000,000,000,000.
- Since the Earth is worth (at most) $1,000,000,000,000,000, Dream Island's value is 1/1000 of the Earth.
- Dream Island also appeared as a recommended character in "Insectophobe's Nightmare 2". It's seen with three tall buildings and a lake.
- In "Zeeky Boogy Doog", when Golf Ball made Dream Island, it looked far different than the one in BFDI's Intro. It had a big glowing sign, palm trees and more tall buildings, and it looked much smaller in size than the one in BFDI.
- In the intro and the first episode, Dream Island has no walls. But in "Return of the Hang Glider", the (soundproof) walls and the gate were added.
- Some areas on Dream Island that the Announcer didn't mention are a pool with a large slide (presumably a water park) and a skate park.
- In real life, there are islands called Dream Island in Antarctica and Ontario, Canada, as well as an artificial island in Tokyo, named Yumenoshima ("Dream Island" in Japanese).