Pulau Hantu was where ancient Malay warriors once had fierce duels to the death and their ghosts are said to wander on the island.

Many people died from their savage fighting and the blue seas surrounding the area slowly turned red and became polluted with human blood, upsetting the Jinns (or spirits, in Islamic culture) at the bottom of the ocean.

Despite its forbidding name, Pulau Hantu is a favourite haunt for fishing, scuba diving and snorkeling enthusiasts because of its sheltered beaches, swimming lagoons and inviting waters.

Common sea life that can also be found include the clown fish or anemonefish, damselfishes, wrasses and angelfish.

It was reported in the 3 June 2006 edition of The Straits Times that a plan to create a "marine sanctuary" has been dropped due to opposition from conservationists.

The National Parks Board, National Biodiversity Centre, Blue Water Volunteers and volunteers from the public started a coral reef surveying programme in 2005 to monitor the status of hard corals, mobile invertebrates and reef fish at several locations around 5 southern islands, including Pulau Hantu.