Terengganu is a Malaysian state on the east coast of peninsular Malaysia. It is bordered to the north by Kelantan, and to the south by Pahang.
Terengganu is home to some of the nicest beach islands in the world. In a nutshell, Pulau Perhentian is for backpackers trying to avoid the crowd in Thailand, and Pulau Kapas for backpackers trying to avoid the crowd on Pulau Perhentian. Pulau Redang is more upscale, and mainly visited by weekend-holidaymakers and divers and from Kuala Lumpur and Singapore.
While you are there, take a look at Kuala Terengganu, the state capital.