Blood Island is the second new location featured in The Curse of Monkey Island. Guybrush Threepwood ends up traveling there in the search of a whopping big diamond ring to lift the curse off his fiancée Elaine Marley. It serves as one of the more sinister islands of the series where several secrets and expositions are revealed about LeChuck, the main villain of the series.
The island has a hotel-resort run by Griswold Sopabuena. It also has an active volcano, Monte Acidófilus, which has been stopped from erupting by the Cannibals of Monkey Island. Blood Island was removed from the shipping lanes some years ago; this and the end of volcanic activity have ended the flow of tourists who used to crowd the island. During his stay on the island Guybrush causes the volcano to erupt and the hotel prepares for a new influx of tourists.
At the west end of the island there is a windmill and just near the hotel a cemetery, maintained by Mort the Gravedigger. On a verdant cliff under the volcano lies the new cannibal village. At the east end of the island is the broken lighthouse which Guybrush has to fix in order to call upon the services of the Lost Welshman, whose job is to ferry passengers between nearby Skull Island.
On the southeast side of the island there is small beach and a clearing, near the place where Guybrush shipwrecked The Sea Cucumber.
- Blood Island is for Bleeders is the slogan of the Blood Island Tourism Council which they've printed on stickers.
- Like Scabb Island, Blood Island appears to have no Governor or governing body. It could be argued that the Goodsoups or the Cannibals own the island, seeing as they both have significant settlements on the Island.
- Though the island is seen on the map at the beginning of The Curse of Monkey Island, the island is later omitted from the map in Escape from Monkey Island depicting the Tri-Island Area. It is unknown whether the island, considering its mysterious and 'lost' location, is meant to be part of the Tri-Island Area.
- The island is more popular later on, probably due to the renewed eruptions; Club 41 on Flotsam Island begins offering Blood Island volcano shots.