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Hanalei is a census-designated place (CDP) in Kauaʻi County, Hawaii, United States. As of the 2020 census, Hanalei had a population of 444. 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.