This paper examines lessons from past approaches to natural disasters, as well as early lessons from the post-2004 Asian tsunami rehabilitation, to draw out general principles for rehabilitating livelihoods in poor coastal communities. We contend that avoiding the mistakes of the past requires: (1) a framework for understanding the diversity of coastal people’s livelihood strategies and the sources of their vulnerability, (2) a process for designing interventions that build on this understanding in order to strengthen and revitalize coastal communities, including a means of assessing and selecting the most promising livelihood options, and (3) a focus on the longer-term challenge of building future resilience and sustainability in the communities by addressing the root causes of vulnerability.