Island Lake is a settlement in the Unorganized North Part of Sudbury District in northeastern Ontario, Canada.

It is located about 20 kilometres (12 mi) southwest of Chapleau, and 15 kilometres (9 mi) southwest of the junction of Ontario Highway 101 and Ontario Highway 129 near the settlement of Devon on the Canadian Pacific Railway.

In about 1958 Ontario Hydro installed a three phase power line into the community.

The company built homes for families and also had bunk houses and a cookery for the single workers.

Many of the older homes were torn down as per the conditions of the Land Use Permit, but most of the newer ones on the lake were sold to individuals after a survey established lot boundaries.