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Shang Tsung's Island is an island stated to be located between the realms of both Earthrealm and Outworld on the Lost Sea. However, in other sources, Shang Tsung's island was said to be located in the East China Sea and the South China Sea. It is possible that this isle is actually located somewhere close to the Yin Yang Island. That piece of land itself is also stuck between Earthrealm and Outworld.
This island is where the series' eponymous tournament being held for centuries until the treacherous sorcerer Shang Tsung took both it and Mortal Kombat tournament from the Shaolin Order. He then corrupted the tournament and made various alterations in order to win Earthrealm for his emperor, Shao Kahn. Though the island was said to have sunk after Shang Tsung's defeat in the Mortal Kombat tournament (depicted in both the Mortal Kombat II comic and Mortal Kombat: Shaolin Monks), other MK games have treated the island as though it were still perfectly intact, such as Mortal Kombat: Deadly Alliance and Mortal Kombat 11. The island's unexplained restoration was results of either Shang Tsung and his allies' effort to restart the eponymous tournament or Kronika's tampering over tine and space.
In her non-canonical Mortal Kombat vs. DC Universe ending, it is revealed that Shang Tsung's Island fell into the possession of Princess Kitana and her Edenian Resistance fighters who rename it "Argus Island" in honor of their god Argus. They turn the island into a place of beauty and light which serves as a place of asylum for them in Earthrealm after Shao Kahn's defeat where they are sheltered from the eyes of mortals.In Mortal Kombat 11, Shang Tsung's Island is also the location for The Krypt, at which Shang Tsung allows the guests to explore as they please. It is also a stage, Shang Tsung's Island Ruins.