Laboratory electric and magnetic model measurements were carried out to examine how the addition of a nearby elliptical island, to an otherwise complex continental coastline involving bays and capes, affects electromagnetic induction in coastal regions. Irregularities in a coastline in the form of bays and capes lead to significant spatial field variations in coastal regions due to variations in density of induced current flowing in the ocean caused by current deflection or channelling by the coastal irregularities. The addition of a nearby island, which for the appropriate field polarization can result in current channelling through the strait, greatly influences these field spatial variations. For E-polarization, the case of the model electric field of the inducing source parallel to the strait, and for short period (4.2 min studied here) variations, the effect on the fields, of the model elliptical island in the shallow coastal ocean, at points on the nearby continental coastline, was to increase by factors as large as two to three the H y amplitudes at the centres of the bay and the cape, and the E x amplitude at each bay, cape and straight coastline in the region of the strait, as compared with the values for coastline models without an offshore island. For H-polarization, the case of the electric field of the source perpendicular to the strait, the effect of the island was to increase by a factor of two to three the H z coastline values at the edge of the bay, and to decrease by a similar factor the value at the edge of the cape. Further, the spatial variations in the fields for both polarizations, over the island and over the strait were strongly influenced by current channelling through the strait. Thus any interpretation of field station measurements on such an island, on the sea floor in the strait, or on the continent in coastal areas near an island, should take into account the effects due to current concentrations in the strait particularly at short periods.