Hanalei is a census-designated place (CDP) in Kauai County, Hawaii, United States. The population was 478 at the 2000 census. Hanalei means "lei making" in Hawaiian. Alternatively, the name Hanalei also means crescent bay, and may be indicative of the shape of the bay..
According to the United States Census Bureau, the CDP has a total area of 0.8 square miles (2.1 km²), of which, 0.6 square miles (1.7 km²) of it is land and 0.2 square miles (0.4 km²) of it is water. The total area is 20.73% water.
There were 193 households out of which 24.9% had children under the age of 18 living with them, 39.9% were married couples living together, 10.4% had a female householder with no husband present, and 40.4% were non-families. 31.1% of all households were made up of individuals and 6.2% had someone living alone who was 65 years of age or older. The average household size was 2.48 and the average family size is 3.10.
In the CDP the population was spread out with 24.1% under the age of 18, 7.3% from 18 to 24, 27.0% from 25 to 44, 30.1% from 45 to 64, and 11.5% who were 65 years of age or older. The median age was 40 years. For every 100 females there were 99.2 males. For every 100 females age 18 and over, there were 102.8 males.
The median income for a household in the CDP was $34,375, and the median income for a family was $55,750. Males had a median income of $31,500 versus $28,500 for females. The per capita income for the CDP was $21,241. About 21.9% of families and 25.3% of the population were below the poverty line, including 33.1% of those under the age of 18 and none of those 65 and older.