The 15 Best Restaurants in Labuan Serving Unforgettable Culinary Delights

One evening in Labuan, I set out with a simple plan—grab a quick dinner and call it a night. But what started as a casual meal turned into a full-blown food adventure that I never saw coming.

One dish led to another, and before I knew it, I was hopping from one restaurant to the next, chasing bold flavours, fresh seafood, and mouthwatering local delights. Some places wowed me with perfectly grilled fish, others with rich, aromatic curries.

If you’re ready to indulge in a feast that’ll leave you craving more, you’re in the right place. Here are the best restaurants in Labuan serving up unforgettable culinary delights you won’t want to miss!

Mawilla Yacht Club Restaurant

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Address: Jalan Tanjung Batu, 80696

Contact details: +6087423888

Operating hours: Monday to Sunday – 10:30 AM to 10:30 PM

Cost: $$

Mawilla Yacht Club Restaurant is where you go in Labuan when fresh seafood is the priority. The selection here is impressive, with daily catches of flower crabs, crayfish, prawns, and an assortment of fish laid out for you to choose from.

Whether you go for their famous steamed garoupa or something richer like salted egg flower crabs, you’re in for a meal that brings out the best in ocean-fresh ingredients. The tom yam bee hoon soup is also a must-try, with a broth that leans to the milky side.

Dining here feels casual yet lively, with a bustling crowd gathering as the night goes on. The open-air setting by the sea gives a laid-back island vibe, making it a great spot for a long, relaxed dinner.

Pro tip: The air-conditioned section is reserved for large groups, so if you’re coming in a small party, be ready to sit outside. Arriving early helps, especially if you want first pick of the fresh seafood!

Red Onion

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Address: Labuan Golf Club

Contact details: +6087412372

Operating hours: Monday to Sunday – 10:30 AM to 10 PM

Cost: $$

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Menu

Red Onion brings something refreshingly different to Labuan’s food scene with its cosy, hipster-like ambiance and an impressive spread of Western dishes. If you’re in the mood for something hearty, their burgers and pizzas are standout choices.

The pizza here is naturally 18 inches, making it perfect for sharing, but you can always request a smaller 12-inch version if you’re dining solo. The toppings are well-balanced, and the crust has that perfect chewiness, making every bite satisfying.

Beyond pizzas, the menu also surprises with dishes like couscous, grilled meats, and pasta, showing off a mix of Mediterranean and classic Western flavors. The plating here is top-notch, turning each dish into something that looks as good as it tastes.

Pro tip: There’s no GST or service charge here, so the price you see on the menu is exactly what you pay—a rare and pleasant surprise!

Labuan Fisherman Harbour Restaurant

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Address: 700, Bandar Labuan, 87000

Contact details: +6087408226

Operating hours: Monday to Sunday – 10:30 AM to 2:30 PM | 5 to 10 PM

Cost: $$

Website

Menu

Labuan Fisherman Harbour Restaurant is where you go when you want fresh seafood cooked to perfection. Their Nestum shrimp is something you won’t find in every seafood spot—it’s crunchy, buttery, and packed with flavour in every bite.

If you’re a fan of deep-fried seafood, their fried squid is a must-try, cooked just right so it stays tender inside while being crispy on the outside. Even their fried chicken is surprisingly good for a seafood restaurant, with a crunchy coating.

Their mapo tofu is an interesting blend of Sichuan and Malaysian Chinese influences, making it slightly milder than the traditional version, but still full of flavour. If you’re in the mood for something comforting, their tom yam with deep-fried fish fillet hits the spot. 

Pro tip: If you love seafood but want something different, go for their fried chicken—it’s unexpectedly one of the best dishes here!

Nagalang Seafood Restaurant

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Address: Jalan Kerupang Satu, Kampung Nagalang, Simpang Ikan Todak 24

Contact details: +60178143474

Operating hours: Monday, Wednesday to Sunday – 2 to 10 PM

Cost: $$

Website

Menu

If you’re in Labuan and craving fresh seafood with bold flavours, Nagalang Seafood Restaurant is where you need to be. Their steamed siakap is a standout, with tender, flaky flesh infused with just the right balance of seasoning.

If you want a bit of crunch, the salted egg silverfish is the way to go—it’s crispy, savoury, and highly addictive. The restaurant also serves Thai-inspired dishes, like their tangy chicken feet salad, which has a refreshing kick.

Seafood lovers will be spoiled for choice with dishes like sweet and sour crab, salt and pepper prawns, and garlic soy sauce fish. The lobsters here are particularly fresh, cooked just right so the meat stays juicy and tender.

Pro tip: If you prefer variety, their menu extends beyond seafood, offering everything from light appetisers to rich, saucy mains. The little details, like complimentary salted peanuts and pickled papaya, add a nice touch to the dining experience.

Bayu Labuan

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Address: Bandar Labuan, 87000

Contact details: +60162096689

Operating hours: Monday to Sunday – 8 AM to 10 PM

Cost: $$

Menu

If you’re after fast, affordable, and satisfying comfort food, Bayu Labuan is a solid choice. The menu covers everything from classic kopitiam-style breakfasts to hearty local dishes.

Their buttermilk chicken chop is a crowd favourite—crispy on the outside, tender on the inside, and coated in a rich, creamy sauce. If you’re in the mood for something warm and slurp-worthy, the curry mee hits the spot with its fragrant, coconut-infused broth.

For breakfast, Bayu Labuan doesn’t disappoint. You can go Western with an American breakfast or keep it local with a classic nasi lemak—or better yet, combine both for a unique breakfast feast.

Pro tip: If you’re a coffee lover, grab a cup of their kopi o—it’s bold, smooth, and way better than most café options at half the price!

Thai Beach Restaurant

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Address: Lot 205352049, Kg Nagalang, 87000, W.p Labuan

Contact details: +60165871313

Operating hours: 

  • Monday – 3 to 10:30 PM
  • Tuesday to Sunday – 11 AM to 10:30 PM

Cost: $$

Website

Menu

Thai Beach Restaurant delivers bold, aromatic dishes that hit just the right balance of spice, sweetness, and tang. The tom yum seafood is packed with fresh prawns, squid, and fish, soaking up a rich, slightly creamy broth that brings warmth with every spoonful.

Their butter prawns are crispy yet coated in a buttery, savoury sauce, while the crab kam heong bursts with wok-fried fragrance from curry leaves, dried shrimp, and chilli. The Thai-style steamed fish is another dish you can’t skip.

It comes perfectly cooked in a tangy, garlicky broth that enhances the freshness of the fish. For something unique, go for the wrapped chicken—juicy, fragrant, and infused with spices that give it a signature Thai aroma.

Pro tip: If you’re planning to order seafood, ask about availability beforehand—some dishes tend to sell out fast, and you might need to swap for another option!

House of Siam Cafe

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Address: Unit 1-9, 1st Floor Paragon Labuan

Contact details: +60168116993

Operating hours: Monday to Tuesday, Thursday to Sunday – 10 AM to 10 PM

Cost: $$

Website

Menu

For an explosion of bold Thai flavours, House of Siam Café delivers every dish with generous portions and rich, aromatic spices. The tom yum soup is thick and flavour-packed, brimming with baby squid and a perfect balance of tang and heat.

If you’re a fan of crispy bites, the deep-fried morning glory stays crunchy even after it cools, making it an addictive side to pair with your meal. The pineapple fried rice comes in a massive portion, bursting with sweet and savoury goodness.

The pad kra pow packs a punch with fragrant basil and tender, stir-fried meat, making it a satisfying option for those who love a little spice. For a refreshing side, the somtam (Thai papaya salad) is zesty, crunchy, and a great palate cleanser between bites.

Pro tip: If you’re planning a dinner visit, the Thai-style steamboat is worth trying for a communal, flavour-packed meal. It’s a great way to experience a variety of meats and fresh ingredients in one go!

New Sung Hwa

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Address: First Floor, U0002, Jalan Okk Awang Besar

Contact details: +6087411008

Operating hours: 

  • Monday – 5:30 to 10 PM
  • Tuesday to Sunday -12 to 2:30 PM | 5:30 to 10 PM

Cost: $$

Seafood lovers, you’re in for a treat at New Sung Hwa, where fresh catches take center stage in every dish. The steamed grouper is a must-try, cooked to perfection with delicate, flaky meat that soaks up the light yet flavorful sauce.

If you’re feeling indulgent, the baby lobsters offer a rich, buttery experience with just the right amount of seasoning. The Malay-style kangkung brings a balance of spice and umami, making it a great companion to the seafood dishes.

The prawns and lala (clams) round out the meal with their fresh, oceanic sweetness, though preferences may vary depending on your taste for shellfish. Pair it all with a cold beer or a refreshing local drink, and you’ve got yourself a fantastic meal!

Pro tip: If you’re dining with a group, order a mix of steamed and stir-fried seafood dishes to experience a variety of textures and flavours. The portions are generous, so come hungry!

Welcome Lee Restaurant

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Address: Bandar Labuan, 87000

Contact details: +6087425636

Operating hours: Monday to Sunday – 11 AM to 2:30 PM | 5:30 to 10 PM

Cost: $$

When it comes to fresh and flavourful seafood, Welcome Lee Restaurant is a hidden gem that deserves more attention. Their tiger prawns are a must-try—massive, juicy, and full of that natural ocean sweetness with an extra crunch.

The steamed snapper with ginger sauce is another standout, striking the perfect balance of light, fragrant, and savoury flavours that pair beautifully with a bowl of rice. If you’re looking for variety, the red rice wine pork is a rich, aromatic dish.

For a comforting option, the homemade tofu on a sizzling hot plate is incredibly soft inside with a crisp outer layer, complemented by a thick, savoury sauce. 

Pro tip: The special yam slice fish soup is an underrated dish that’s worth ordering. It’s creamy yet light, with slices of fish and soft yam soaking up all the flavour—perfect if you want something warm and comforting!

Tanjung Food Hub

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Address: Jalan Tanjung Aru, Kampung Tanjung Aru WP

Contact details: +60195501800

Operating hours: Monday to Sunday – 4:30 AM to 11 PM

Cost: $$

Website

Menu

For a dining spot that brings together Malaysian, Thai, and Western flavours, Tanjung Food Hub has something for every craving. If you’re into bold, spicy dishes, the nasi goreng daging pedas is a flavour bomb—packed with heat and wok hei.

The set nasi sup daging is another solid choice, featuring tender beef in a rich broth that pairs beautifully with fragrant rice. If you’re leaning towards Western flavours, the burgers and pasta here are worth trying.

The burgers come loaded with juicy patties and a satisfying char, while the pasta dishes are well-balanced and creamy without being overwhelming. The menu is quite diverse so you’ll find something that satisfies your cravings.

Pro tip: For a lighter yet flavourful meal, go for their Thai-inspired dishes. Their tangy and herb-packed selections add a refreshing twist, especially if you’re looking to switch things up from the usual Malaysian comfort food.

Sabai Sabai Thai Resto Bar

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Address: Jalan Bunga Mayang Labuan Malaysia (Above Aramai)

Contact details: +6087750053

Operating hours: Monday to Sunday – 11 AM to 11 PM

Cost: $$

Website

Menu

If you’re after bold Thai flavours, Sabai Sabai Thai Resto Bar is a solid choice. The tom yum packs just the right amount of heat and tang, making it a go-to for spice lovers.

The green curry is another standout, rich, creamy, and loaded with aromatic herbs that hit all the right notes. Generous portions mean you’ll be leaving fully satisfied.

For something a little different, the nasi goreng garlic chicken is a hidden gem. It might not look fancy, but the flavours are spot on—garlicky, savoury, and just the right amount of crispy goodness from the chicken.

Pro tip: If you’re in the mood for something light and refreshing, the Thai milk tea is a great way to balance out the spices. Pair that with an outdoor seat, and you’ve got yourself a relaxed meal with a great vibe.

Blue Wave Lounge & Restaurant

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Address: U0345, Jalan Merdeka

Contact details: +6087418345

Operating hours: Monday to Sunday – 4 PM to 1 AM

Cost: $$

Website

Menu

For a mix of authentic Northern Indian flavours, classic Western dishes, and an open-air bar vibe, Blue Wave Lounge & Restaurant has something for everyone. The naan and tandoori chicken are definite standouts, offering that smoky, charred flavour.

If you’re a fan of rich, aromatic spices, the masala chicken is a must-try—deeply flavoured with a perfect balance of heat and creaminess. Besides Indian food, the menu also covers local and Western favourites, making it a great pick for mixed preferences.

The chicken burger is a solid choice if you’re craving something simple yet satisfying. If you’re just here for drinks, the bar area is stocked with beers and liquor, making it a great hangout spot.

Pro tip: Order the chapati with dhal or butter chicken—it’s one of the best comfort meals you can get in Labuan, especially if you’re craving something warm, hearty, and packed with flavour.

Sakura Sushi Signature

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Address: Ground Floor Lot 1, Wisma Siamloh, Jalan Kemajuan

Contact details: +601163388795

Operating hours: Monday to Sunday – 11:30 AM to 9:30 PM

Cost: $

Website

Menu

For sushi lovers, Sakura Sushi Signature is a go-to spot in Labuan where quality meets affordability. The sushi train makes it easy to grab a quick bite, while the full menu offers everything from fresh sashimi to warm, comforting Japanese rice bowls.

If you love variety, the selection here is plentiful, with well-prepared rolls, delicate nigiri, and crispy tempura options. Presentation is a big part of the dining experience here, with beautifully plated dishes that make each meal feel special.

The salmon sashimi is a must-try, cut thick and served fresh with just the right amount of fattiness. If you prefer something heartier, go for the teriyaki chicken don or a steaming bowl of ramen for a warm and satisfying meal.

Pro tip: Try the specialty rolls unique to this restaurant—they often have creative, off-menu options that blend fresh ingredients with bold flavours. Don’t hesitate to ask the staff for recommendations!

The Farmshop

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Address: 700, Kg. Pantai

Contact details: +60128032021

Operating hours: Monday to Sunday – 11:30 AM to 9:30 PM

Cost: $$$

Website

Menu

For those who appreciate fresh, high-quality ingredients, The Farmshop delivers a farm-to-table experience that makes every meal special. The menu is packed with well-executed dishes, from crispy barracuda fish to rich, flavourful teriyaki chicken.

Even the simplest items, like their fresh salads, are elevated with produce picked straight from their on-site aquafarm. If you’re in the mood for something hearty, the lamb shank is a must-try—slow-cooked until fall-off-the-bone tender.

Their house-made yogurt ice cream is another treat, offering a creamy, tangy finish that’s not overly sweet. The setting adds to the experience, with a relaxed, well-ventilated space that makes it easy to enjoy your meal at a slow, unhurried pace.

Pro tip: Don’t skip their tea selection—each blend is carefully curated, making it the perfect pairing for a fresh, wholesome meal.

Restaurant Pulau Labuan Coffee House

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Address: U 0129-U, 0130, Jalan Muhibbah

Contact details: +6087416288

Operating hours: Monday to Sunday – 6:30 AM to 9:30 PM

Cost: $$

Website

Menu

When you’re craving authentic Chinese cuisine, Pulau Labuan Coffee House is a fantastic spot to indulge in flavour-packed dishes. Their charcoal bean curd is a standout, offering a unique smoky aroma with a silky texture.

If you love seafood, the prawn-in-coconut is a must-try—fresh, plump prawns bathed in rich, creamy coconut gravy that’s both comforting and deeply satisfying. For something with a little spice, their seafood noodles and curry tiger prawn noodle deliver bold, savoury flavours.

The variety on the menu makes it easy to mix and match, whether you’re in the mood for a noodle soup, stir-fried dishes, or even Western-style options. It’s a place where you can enjoy your meal in a peaceful setting.

Pro tip: Ask about seasonal seafood specials—some of the best dishes aren’t always on the regular menu but are worth trying when available!