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The December 26, 2004 tsunami has caused extensive damage in the Union Territory of Andaman & Nicobar Islands, India, affecting 115.36 km of coastline. In order to identify the impacts of tsunami in South Andaman of the Andaman Islands, the study has been carried out using satellite data for pre-tsunami (Feb. 2003) and post-tsunami (March 2005). This paper provides an assessment of damages caused by tsunami and suitable resettlement places for the people using remote sensing and GIS technology. Assessment of tsunami inflicted damage to island ecosystems assumes greater importance owing to their life-sustaining and livelihood support abilities. Apart from the reparation caused to life and property, significant damage has afflicted the ecosystem, which will have long lasting effects. The tsunami-induced damage to coastal ecosystems was studied based on coastal landuse, geomorphology and coastal critical habitat for South Andaman Island using remote sensing and GIS. An area of 3,366 ha of land area was affected by tsunami. Within the coastal ecosystem, coral reef and mangrove were also severely affected. The study of landforms shows that the land is submerged. The severity of damages and their consequences suggest the need for a definite restoration ecology programme. [ABSTRACT FROM AUTHOR]