Water quality improvement processes for stagnant area consist mainly of technologies applying vegetation and artificial water circulation, and these existing technologies have some limits to handle pollution loads effectively. To improve the purification efficiency, eco-friendly technologies should be developed that can reinforce self-purification functions. In this study, a multi-functional floating island combined with physical · chemical · biological functions (① flotation and oxidization using microbubbles, ② vegetation purification and ③ bio-filtration with improved adsorption capacity) has been developed and basic experiments were performed to determine the optimal combination conditions for each unit process. It has been shown that it is desirable to operate the microbubble unit process under conditions greater than 3.5 kgf/cm2. In vegetation purification unit process, Yellow Iris (Iris pseudacorus) was suggested to be suitable considering water quality, landscape improvement and maintenance. When granular red-mud was applied to the bio-filtration unit process, it was found that T-P removal efficiency was good and its value was also stable for various linear velocity conditions. The appropriate thickness of filter media was suggested between 30 and 45 cm. In this study, the optimal design and operating parameters of the multi-functional floating island have been presented based on the results of the basic experiments of each unit process.