This study will examine the second Sakhalin and Kuril Islands expedition of lieutenant Khvosotv and ensign Davidov in 1807. The plan of the expedition to Sakhalin was originally built by Rezanov. He genuinely believed that it would help to establish trade between Russia and Japan. On the August 8th of the 1806 he issued an order that prescribed two officers to conduct the expedition to Sakhalin. However, on the 24th of September, he cancelled the expedition. Despite that fact Khvostov decided to conduct the expedition to Sakhalin. Moreover, the following 1807 year Khvostov, this time together with Davidov, carried out the plan of expedition to Sakhalin and Kuril island for the second time. This research is based on the Davidov’s journal “The Voyage of an American Company Tender “Avos” in 1807, under Ensign Davidov”, in which he gives a detailed description of the expedition. He makes interesting notes on the state of the Japanese settlements, compares them to the Russian ones, and describes the search of the first Russian settlements, which was founded by Zvezdochotov on Kuril Islands.