Sesame Island is a tropical-themed area of Sesame Place. The area was added to the park in 1990. The island is formed by the 1,000 foot Big Bird's Rambling River and is highlighted by the 60-foot "Good Ship Sesame" marking the entrance onto the island.

The island houses Ernie's Waterworks, an interactive aquatic playground that features fountains, slides, water-spraying mazes and other unique water activities.

The island is also home to an interactive game center titled Ernie's Duck Pond, a food center titled Snuffy's Snackbar, and the Paradise Theater which showcases regular stage shows and acts. There is also Sand Castle Beach, a giant beach-like sandbox and playground.