Peace Park at Labuan is situated close to Surrender Point, the place where the 32nd Japanese Southern Army surrendered to the 9th Australian Imperial Forces on 9 September 1945.The Japanese arrived at Labuan on January 1, 1942, less than a month after they had started their invasion of Malaya at Kota Bharu. They took formal possession of the island on the 3rd, having faced no resistance.

The Peace Park was built as a memorial and also as a renunciation of the horrors of the war. It is dominated by the memorial mound, surrounded by landscaped gardens and pavilions. Small ponds with stone bridges and park seats are all Japanese-inspired. A bronze plaque commemorating the surrender is mounted on a stone slab near the entrance.