High Quality Content by WIKIPEDIA articles! Okaloosa Island is a regionally used term for a small section of larger Santa Rosa Island located in Okaloosa County, Florida. Okaloosa Island is home to hundreds of residential homes, high rise condominiums and major hotels and motels. The area is unincorporated and uses Fort Walton Beach as a mailing address but it is not actually part of that city. The island is part of Florida`s Emerald Coast and features spectactular sugar-white sand beaches.