The island lies off the southern shore of the mouth of Wolstenholme Fjord, north of Wolstenholme Island. Geologically it is composed of stratified rock. It is the largest island in the bay, flat-topped and with steep sides, with a landspit in the northeast.[3] Its highest point is 391 m (1,283 ft).[4] The channel to the south, between Saunders Island and the mainland is known as Bylot Sound.[5]
Under Commander James Saunders, HMS North Star sailed to the Arctic in 1849 in the spring on a venture to search and resupply Captain Sir James Clark Ross' expedition, who in turn had sailed in 1848 trying to locate the whereabouts of Sir John Franklin's expedition.[7]
Failing to find Franklin or Ross, Saunders's mission aboard North Star consisted in depositing stores along several named areas of the Canadian Arctic coast and returning to England before the onset of winter. However, James Saunders's ship became trapped by ice off the coast of northwest Greenland in North Star Bay. During the winter 1849–50 Saunders named numerous landmarks in that area, including Saunders Island, while wintering in the frozen bay.[8]