This paper draws on extensive island examples with a view to offer ‘creative’ solutions to the ongoing dispute over the Diaoyu/Diaoyutai/ Senkaku Islands between China (and Taiwan) and Japan in the East China Sea. In spite of the rhetoric and apparent intractability of island conflicts, there are various examples from the past (and the present) that suggest how island disputes may be decided, and in ‘win–win’ ways, to the satisfaction of the different parties involved. The resolution of island territorial problems can benefit greatly from a critical appreciation of how other small islands, also contested, have had their situation resolved in non‐zero‐sum ways. In such cases, sovereignty has been shared, split/divided or expunged; in other cases, sovereignty disputes have been put aside in order to co‐develop and co‐exploit natural resources. There is also one example of a UNESCO World Heritage Site consisting of a string of small islands and surrounding waters whose management is shared between three countries.