The 15 newest homes listed for sale in Okaloosa Island. Okaloosa Island is the beach destination in Destin-Fort Walton Beach Florida that offers 3 miles of sugar white super soft sand and the clear emerald green waters of the emerald coast beaches. Lying along the Florida Panhandle on the 24 mile stretch of the Santa Rosa Barrier Island between Navarre Beach, Florida and Destin Beach, Florida, Okaloosa Island is a family oriented destination that offers gorgeous beaches and options for everyone.