Lahad Datu is a small town in the Tawau Division of Sabah. It is located on the north side of Teluk Lahad Datu, formerly called Darvel Bay. Lahad Datu has a population of about 150,000 (2000 est.). The Pan Borneo Highway goes through it.
The area around Lahad Datu is covered mostly with cocoa and oil palm plantation. It is a gateway to natural sights such as Danum Valley and Madai Caves.
Express buses are available connecting Lahad Datu with Sandakan (2 1/2 hours away, fare RM18), Semporna (2 hours away, fare RM15) and Tawau (2 1/2 hours away, fare RM15). The road from Semporna and Tawau passes Madai Caves.