Little Ambergris Cay is a unique and significant habitat for a wide range of birds and marine life.

[1] The island was named for ambergris, a waxy substance that migrating sperm whales regurgitate and is prized as a fixative for perfume and cosmetic products.

[4] In the late 18th and early 19th centuries, Loyalists settled on Big Ambergris Cay, raised cows, made pottery, and built houses, stables, and cisterns.

[5][6] Then, Horatio Stubbs of South Caicos purchased the island, the dwelling house, and a female slave in 1826 for the cost of 6,000 bushels of salt.

[5] In 1978 an investment group from the state of Arizona tried to purchase Ambergris Cay, with the goal of building a university on the island but this effort was rejected by the government.

[9] In addition to private residences, the resort as of April 2024[update]comprises 8 villas, 17 bungalows, a spa and a water sports center Ambergris Cay International Airport is located on the island.

[5] The island is home to the native Turks and Caicos rock iguana (Cyclura carinata), which is critically endangered.