Gaya Island derived its name from the word "Gayo" which means big in both the Kadazandusun and Bajau[1] languages and occupies an area of 15 km2 (3,700 acres) with an elevation of up to 300 metres.

Gaya is the largest island in the Tunku Abdul Rahman National Park, closest to downtown Kota Kinabalu (KK) and is covered with dense virgin, tropical forest.

Historically, Gaya Island was also the site of the British North Borneo Company's harbour, which was razed by the folk hero Mat Salleh on 9 July 1897.

Starting from 1970s, Filipino-Moro refugees comprising Tausūg and Bajau peoples began to inhabit the island in their bid to escape from the war in the southern Philippines.

The eastern shore of Gaya Island supports a well-known illegal Filipino colony, called Kampung Lok Urai, with stilt houses girdling the beach as far as the eye can see.

[6] The Sabah state government has since been working to end the Filipino squatter problems that have become the main cause for rampant crimes, terrorism and drug trafficking in the state, especially in Kota Kinabalu, as their location is too close within business areas, by relocating these squatters to a proper place for proper management,[7] while many of the problematic, illegal immigrants will be deported back to the Philippines and their further entry will be prevented.

[2][8] After the fire in Kampung Pondo on 2014, the Sabah state government has proposed to move the illegal immigrants in the island to Kinarut with a better facility of modern houses.