Geographic isolation plays a pivotal role in speciation by restricting gene flow between populations through distance or physical barriers. However, the speciation process is complex, influenced by the interplay between dispersal ability and geographic isolation, especially in “great speciators” – bird species present on multiple islands that, at the same time, have many subspecies. Comparing population differentiation in both continental and insular settings can help us to understand the importance of geographical context in the emergence of great speciators. The highly diverse white-eye family Zosteropidae includes several great speciators, including the silvereye (Zosterops lateralis) which consists of 16 subspecies, 11 occurring on islands. The distribution of the silvereye on the Australian continent and numerous southwest Pacific islands allows us to explore the influence of different forms of geographic isolation on population divergence. To do this, we conducted a comprehensive phylogenomic analysis of the silvereye and compared patterns of population divergence in insular versus continental silvereye populations. We estimate that the silvereye lineage emerged approximately 1.5 million years ago, followed by the split of the two main silvereye clades: Southern Melanesia and the broader South Pacific (encompassing Australia, New Zealand, and outlying islands). Continental populations show low genetic population structure, which suggests that they can overcome multiple forms of geographic barriers across long distances. In contrast, most island populations are highly structured even over relatively short distances. Divergence statistics further support the idea that water barriers lead to a higher population differentiation when compared to continental distances. Our results indicate that islands promote divergence and provide an empirical example of the geographical conditions that result in the emergence of great speciators.