With an area of 198 km2 (76 sq mi), it is the third largest island belonging to Estonia, after Saaremaa and Hiiumaa.

In Pädaste, an internationally renowned luxury hotel and spa operates in the restored manor house.

In January 1227, an army of the Livonian Brothers of the Sword with Letts, Germans of Riga and native Livonians (20,000 men commanded by William of Modena) crossed on sea ice from the mainland and attacked the island of Saaremaa to reduce the last holdout of pagan Estonians.

The Estonians surrendered on Muhu at a circular stronghold called Mona, the earthworks of which are still preserved near the causeway between the islands.

The battle, named after the village of Karuse, was the fifth-largest defeat of the Livonian or Teutonic Orders in the 13th century.