Hanalei is a census-designated place (CDP) in Kauai County, Hawaii, United States. Hanalei means "lei making" in Hawaiian. Alternatively, the name Hanalei also means "crescent bay" and may be indicative of the shape of Hanalei Bay. According to the United States Census Bureau, the CDP has a total area of 0.8 square miles (2.1 square kilometers), of which 0.6 square miles (1.6 square kilometers) is land and 0.2 square miles (0.52 square kilometers) is water. The total area is 20.73% water.