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Isla Paradiso is a world featured in The Sims 3: Island Paradise, consisting of a town located on a tropical archipelago with many different islands. It was designed to highlight the many new features introduced in the expansion pack, such as houseboats, diving areas, resorts, and hidden islands. The world bears some resemblance to Sunlit Tides, but has more of a Spanish-Caribbean theme and places more emphasis on interacting with the water.

Unlike other worlds, a land connection does not exist for every lot, necessitating the use of boats in order to get around. Boats can be purchased in buy mode by the player in a similar fashion to purchasing cars, and require a boat trailer to be docked at. Sims can also build a houseboat, a type of residential lot that can be moved around on the water. A taxi boat service is available for Sims who do not own their own boat. Isla Paradiso's oceans are deep enough for the Kraken—a giant sea monster—to appear, and may attack the boats of Sims if they stay out in the water for too long.

129 Sims appear in Isla Paradiso, including one returning Sim—Edward Dregg, who first appeared in The Sims 2: Bon Voyage and The Sims Castaway Stories as a pirate captain ghost.

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