Ilovik Island (5.51 km2) along with adjacent Sv. Petar Islet (0.95 km2) are the most southern part of Cres-Lošinj archipelago, and due to their geographical position, they represent a bridge between the above-mentioned archipelago and northern islands of Zadar archipelago (Premuda, Silba, Olib, Škarda and Ist Islands). This paper was written as a result of several field researches and the analysis of different spatial data sources within the project titled Geographical Bases of the Development of Small Croatian Islands, and it presents basic natural and geographical features of Ilovik Island as well as possibilities for its future socio-economic development.