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We report on the actions of the first daily revisit satellite, FORMOSAT-2, in the recent Indian Ocean tsunami disaster. Starting from the first images of Banda Aceh and Phuket taken on 28 December 2004, FORMOSAT-2 used its unique orbit and pointable sensor system to demonstrate the extent to which it is able to respond to emergencies. A total of 137 images throughout the Indian Ocean rim countries were taken within a month. The data were immediately analysed and turned into damage-assessment maps and other information resources for humanitarian aid. This paper focuses on the image-processing procedure followed for a fast response to the South Asia tsunami event. The imageodesy technique is used to coregister the level-2 product of FORMOSAT-2 image at high accuracy and speed. A novel approach for spectral reservation data fusion has also been proposed. With the advantages of accurate coregistration and reliable spectral property, the colour composites of FORMOSAT-2 imagery have been used as the principle source of information for our tsunami hazard assessment. The potential of FORMOSAT-2 for disaster monitoring is discussed. The technique developed in this research will be adapted to produce pan sharpened images as a standard value added product of FORMOSAT-2. [ABSTRACT FROM AUTHOR]