This chapter examines the impact of the December 26, 2004, Indian Ocean Tsunami on the political, social, and economic situation of Maldives and also looks at the recovery work that was done with the assistance of, and in collaboration with, international aid agencies, shedding light on both its successes and failures. At the same time, the chapter also reveals the impact of the tsunami on a democracy in its infancy and explores the positive and negative effects of the interplay between the disaster and the country’s rapidly evolving political environment. It concludes with lessons that are useful for small countries when dealing with large-scale disasters.