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Tough call to make since islands are born and disappear, split up and break apart. If you count all the sandbars and such as islands, then there are millions, if not billions. However, people live on over 100,000 islands throughout the world.

There are more than 2 million islands, but as previously said, islands appear and submerge all the time. The vast majority have no permanent inhabitants. A satisfactory estimate is 2 million, with constant fluctuation. Any exact number is either false or no longer true (unlikely if not impossible that it was ever correct in the first place).

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