Misty Island is located several miles off the southern coast of Sodor and can be seen from Brendam Docks when it is not covered in mist. It is the home of Bash, Dash and Ferdinand. The logging company's logo is a forest with two axes crossing each other.
At some point, Bash, Dash and Ferdinand were sent here after misbehaving on their original railway on the Mainland.
Thomas got lost there after the chain attaching his raft to the boat pulling it broke. Upon his arrival, he discovered that the rare Jobi trees needed to build the Sodor Search and Rescue Centre grew there. For some time afterwards, engines often visited Misty Island to collect Jobi wood.
In the fourteenth season, Dowager Hatt was taken on a tour of the island and the Logging Locos held a Christmas party there.
In the fifteenth season, Hiro said that it reminds him of his homeland, Japan.