Island Falls is a census-designated place and the primary village in the town of Island Falls, Aroostook County, Maine, United States. It is in the northwest part of the town, situated on the West Branch Mattawamkeag River, part of the Penobscot River watershed. U.S. Route 2 passes through the village, leading northeast 27 miles to Houlton and south 38 miles to Mattawamkeag.