Hanalei is a census-designated place (CDP) in Kauaʻi County, Hawaii, United States. The population was estimated at 254 in 2017. Hanalei means "lei making" in Hawaiian. Alternatively, the name Hanalei also means "crescent bay" and may be indicative of the shape of Hanalei Bay. Hanalei can also be translated as lei valley, referring to the rainbows that color the valley and encircle Hanalei like a wreath.
Hanalei is located at 22°12′24″N 159°30′3″W (22.206653, -159.500713), near the mouth of the Hanalei River on the north shore of the island of Kauai. It is bordered to the east by Princeville.
According to the United States Census Bureau, the CDP has a total area of 0.71 square miles (1.84 km2), of which 0.65 square miles (1.69 km2) are land and 0.058 square miles (0.15 km2) are water. The total area is 8.17% water.
Hanalei was well-populated in ancient times with a thriving native population that produced a bountiful supply of food from land to sea. Hanalei's earliest residents grew large amounts of taro, bananas, breadfruit, sweet potato, yams, and coconuts.