Island City is a city in Union County, Oregon, United States. Its name originated from the city's location on an island between the Grande Ronde River and a nearby slough. However, the slough was later diverted, removing the city's island status. The population was 989 at the 2010 census.
A Boise Cascade particle board plant existed near Island City.
The Lighthouse Pentecostal Church is located in Island City, and was the site of a community COVID-19 testing clinic over the weekend of June 13-14, 2020. By June 16 there were 236 cases linked to the church. It was noted that the church held in-person services without social distancing or masks in April and as late as May 24, and the church had also held a wedding and a graduation, each attended by over 100 people.
Island City lies at the intersection of Oregon Route 82 and Oregon Route 237 on the northeastern outskirts of La Grande. According to the United States Census Bureau, the city has a total area of 0.98 square miles (2.54 km2), all land.
At the 2010 census, there were 989 people, 399 households and 298 families living in the city. The population density was 1,009.2 inhabitants per square mile (389.7/km2).