Island Stone was born in 1998 with the development of the original mesh-backed pebble tile. A group of like-minded people saw potential to invest in the company and turn the invention into a commercial reality. The first container of tiles was made out of a garage in Bali, Indonesia and shipped to New Zealand where it was marketed to designers and architects. The product was very well received by both this market and tile shop retailers, who were keen to stock the new pebble tile.

This gave the founders of Island Stone the confidence to purpose-build a large factory in Bali and bring on additional distributors in Australia, then the US. Distributor agencies have since been opened in the UK, France, South Africa, Belgium, and Puerto Rico. The business in Indonesia now employs over 600 staff, and has satellite operations in Timor, Sumatra, Surabaya, and Malang.

In 2002 Island Stone established Island Stone India Private Ltd, a joint venture manufacturing plant in Bhiwadi, India, taking advantage of the large natural stone resources including sandstone, quartzite and slate. An extensive range of tile and cladding products was developed and is a key part of the Island Stone range. The India business now employs over 150 staff.