Arctic Isle is an ice island in Skylanders Academy where Sensei King Pen resides. Though his house has yet to be seen, its surface is a large field with ice spikes that randomly dot the landscape, and it is said to be cold and uncomfortable to Fire creatures, like Fire Viper. The island itself is one giant ice spike, with its "ground" descending to parts unseen, unlike most of the floating islands.
Arctic Isle is the main setting of Belly of the Beast, when Fire Viper attacked the icefield to capture King Pen after being empowered by the increasing dark magic in the land. Only the penguin's apprentice, Cy, was able to escape, asking for help in Skylanders Academy and getting the help of various Skylanders and cadets.
King Pen spent the previous year on Arctic Isle blindfolded to heighten his other senses without using his sight. In Power Struggle, he sensed Kaos and Dark Spyro arriving on the Isle and was able to overcome the two villains with ease when they attempted to capture him. However with his blindfold still on, the Sensei knocked himself out when he walked right into an ice spike, allowing Kaos and Dark Spyro to kidnap him and take him to Kaossandra's Castle for interrogation on the whereabouts of the Lost Island of Arkus.
- Arctic Isle is the only location from the games not based in a main level; it is based on the unlockable Empire of Ice's arena, Icicle Isle. Like the others, it was radically changed, having no ice lakes or anything resembling stone structures and snow.