Hanalei is a census-designated place (CDP) in Kauaʻi County, Hawaiʻi, United States. The population was estimated at 254 in 2017. Hanalei means "lei making" in Hawaiian. Alternatively, the name Hanalei also means "crescent bay" and may be indicative of the shape of Hanalei Bay. Hanalei can also be translated as lei valley, referring to the rainbows that color the valley and encircle Hanalei like a wreath.