The tsunami that affected 12 countries in the Indian Ocean region, wreaked considerable damage in the state of Tamil Nadu, India. The damage to lives, property and livelihoods requires a sustained and coordinated strategy towards rehabilitation. Any possible intervention towards rehabilitation needs to take into account the socioeconomic and environmental situation prior to the tsunami, to be more effective. The report that follows is, therefore, in two sections. Section I provides background information on the fisheries sector in Tamil Nadu, and on the fishing communities in the state. Section II provides available information on the damage caused by the tsunami on the fisheries and other sectors. It also proposes an outline strategy to address the fisheries-livelihood rehabilitation needs of the affected populations. It needs to be noted that this report focuses mainly on the fisheries sector, as estimates suggest that about 85 per cent of the total damage is to the fisheries sector and to fisheries-based livelihoods. A more comprehensive assessment of damages to the agriculture and other affected sectors, and strategies for rehabilitation of livelihoods based on these sectors, is in order.