Dhaalu Atoll stretches 23 km (14 mi) from east to west, and 38 km (24 mi) north to south. Out of a total of 56 islands in the atoll, seven of the islands are inhabited, with a total population of around 6694. The capital island is Kudahuvadhoo, located at the atoll's southern tip.
Hulhudheli and Rinbudhoo (Rimbudu) islands, located to the west of the atoll, are islands traditionally renowned for the skill of their jewellers.
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Dhaalu Atoll is home to many luxury holiday resorts, while several others are currently under development. The waters that surround the atoll are home to an abundance of marine life and corals, making it a popular destination for snorkeling and scuba diving.