It was built in 1950 by Maryland Drydock Company and was a ferry for the Woods Hole, Martha's Vineyard and Nantucket Steamship Authority, primarily on the Martha's Vineyard run, until March 5, 2007, when it was replaced with the new M/V Island Home, a new ferry which is both larger and faster than the "Islander".

[1] Following a more complete survey GIPEC determined that the ferry had hull damage from running aground and significant deferred maintenance, requiring $6,000,000 in repairs to retain its Coast Guard passenger certification.

In February 2009, unable to sell the ferry through New York state property disposal process, the Islander was put up for sale on eBay and sold to a speculator and scrap merchant Don Slovak from Kinderhook, New York for the winning bid of $23,600.

State officials wanted Slovak to assume full liability for, and insure the vessel before tendering a bill of sale and allowing it to be moved.

In 2010, the ferry was purchased by Donjon Marine Company of New Jersey, and moved to Port Newark for eventual scrapping.