South Nilandhe Atoll, as it is referred to traditionally, is the administrative atoll of Dhaalu. Larger than its northern neighbour, it stretches some 35km from north to south and 20km east to west.

The small village of Hulhudheli is famous for jewellry making. The craftsmen make silver amulets, chains and bracelets using age-old techniques. Approximately 90, from the shore on the north-west side of the island, are the ruins of an old mosque.