The term 'Island in Jaws' is referring to AMITY Island, a fictional island located off the coast of New England in the 1975 movie Jaws. AMITY Island is the setting for the majority of the movie and is home to the small beach town of AMITY. The island is terrorized by a great white shark that has been attacking swimmers in the area. AMITY Island is an important part of the movie and is referenced throughout the film.