Kapalai is famous island, known worldwide as a great place for underwater macro photography. Divers come there to spot strange critters like the mimic octopus, flamboyant cuttle fish, blue ring octopus, and ghost pipefish.
The most famous dive sites are the Jetty or Mandarin Valley where you can find the wonderful Mandarin fishes during a night dive.
Kapalai has also amazing snorkelling opportunities.
Kapalai Resort is a luxury resort built on stilts over a reef. 5 minutes by speed boat from Mabul.