Nilandhoo is the capital of Faafu Atoll, a region with five inhabited islands. It is the largest and most populated island in the region, and includes historical sites such as foah'mathi and Aasaari Miskiy and a school. Foah'mathi is a historical site with a Buddhist temple under it, while Aasaari Miskiy is the second mosque built in the Maldives.
The island is 141.57 km (88 mi; 76 nmi) southwest of the country's capital, Malé. Nilandhoo is the largest island in Faafu Atoll and lies in the southern rim of the region. The island is densely populated with easy harbors.