Day trip to Chincoteague.
AJ's isn't too bad. As the others have said woody's barbecue is no joke. Love the Pittsburgh (pulled pork, slaw, and french fries ala primanti's)
The Captains Cove Marina Club in Greenbackville has some good things on the menu. Seared scallops, fried chicken, and fish have all been nice.
I grew up relatively close to Chincoteague and Ray's Shanty was always the place to go despite the poor experience of the prior poster. Maybe just an off night?
I don't remember ever having a bad meal there, but it is by no means gourmet seafood, or probably even your best bet for fresh seafood, it's simply the place the locals eat and it is inevitably packed. They're also closed on Mondays I believe, just as a heads up.
Don's Seafood is also usually a safe bet.
Last time I was home my Dad and I drove down and ate at Bills and I would highly recommend them. We went for dinner and we were dressed in jeans and t-shirts. We both felt a little underdressed with the decor but the management and servers seemed okay with it. This was about 3 months ago, not sure if they've changed anything since then. Their honey mustard is made in-house and it is some of the best I've ever had.
My recommendation would be that no matter where you eat, save room for Mister Whippy!
Best breakfast- although it is not really a sit down affair - Cinamon rolls from Sugar bakers- I reccomend eating them by the water @ the park next door. If you can get one right out the oven it's amazing.
Lunch is something Chincoteague does well.
J&B cold cuts makes great subs to take to the beach. Seastar is also a good lunch spot with great vegetarian salad and sandwich options
But NOT to be missed is Woody's BBQ mentioned by Treetop Tom. The food is truly amazing and they are a green family establishment and capture the island feel. Food is great I was especially pleased with the handcut fries, incredible! so is the applesauce how often can you say that.
For dinner I reccomend another new place on Maddox The Sea Shell Cafe http://www.theseashellcafe.com/- I have only stoped in for lunch but my food was excellent and the dinner menu looks great-another place that has gotten the eco consious bug and is surprisingly attractive inside.
Also Etta's is great choice for the reasons mentioned by treetop. Great Crab soup.
My favorite food related acivity on the Island by far is watching the sun go down at P.T. Pelican's dock bar with some great raw oysters and a beer. (Located at the Chincoteague Inn Restuarant-)
Enjoy I'm jealous
We have a house at Chincoteague and get there as often as we can. For breakfast and lunch Bill's on S. Main Street is good, but we no longer go there for dinner since they have gone "black tie & white tablecloth." Etta's on Eastside Drive is a better bet and has great waterfront views and terrific crab dishes. Ray's Shanty is on the road from the mainland to Chincoteague (VA 175) and has good crabcakes, shrimp and excellent softshells in season. If you go to Ray's, go early because the wait can be awful. Sadly, we can no longer recommend the former Island Family Restaurant on Ridge Road in its latest incarnation as "Mr. Baldy's." We also like J&B Cold Cuts (S. Main) for subs and the Sea Star Cafe (N. Main) has good sandwiches and salads. There are two good ice cream places on the island, Island Creamery on Maddox Boulevard (homemade, hand-packed) and our favorite, Mr. Whippy (soft-serve) also on Maddox. New this summer is Woody's BBQ at the circle on Maddox w/ good pulled pork & ribs with different sauces (NC, Memphis, etc.).