A relation of demographic dynamics, composition and tourism development on the South Dalmatian Islands is determined in the paper. Depopulation after World War II as a result of rural-urban migration was stopped in the 1980s by in-migration from the mainland pulled by tourism development on Korčula Island, with the most favourable demographic potentials, and on Koločep Island, affected by Dubrovnik suburbanization. Tourism development on other islands has been slower since 1980s and they have still been affected by depopulation, less intensive on the islands of Mljet and Šipan. The exodus from the island of Lopud in the 1990s is a result of a crisis in tourism, main economic activity. Severe depopulation of the island of Lastovo in the 1990s is a consequence of an out-migration of military employees. Migration from the settlements in the island inland to the coastal settlemets of Korčula, Mljet and Lastovo encouraged by tourism increases strong contrast in demographic potentials between these groups of settlements. Highest indicators of tourism development are recorded in the coastal settlements of the island of Korčula, abundant with heritage and favourable demographic resources. Rapid tourism development is registered in small coastal settlements of the islands of Lastovo, Šipan and Koločep, targets of a recent in-migration, with fairly favourable demographic dynamics, composition and resources.