Ecosystem service valuation (ESV) can inform land-use change policy and adaptation responses to climate change in Pacific Small Island Developing States. Despite Small Island Developing States communities relying acutely and directly on ecosystem service (ES) flows, methodologies must contend with limited valuation data and challenges. We undertake ESV to generate coefficients we then apply to mapped habitat extents for Vanuatu. We find the contribution of ESs to the people of Vanuatu is considerable and significantly larger than its gross domestic product. Therefore, policies that support ecologically sustainable exploitation of ESs are paramount in promoting community well-being. We also identify and discuss context-specific methodological challenges, which, if not addressed, risk distorting valuations, supporting perverse policy responses, and eroding confidence in ESV. We make recommendations to address the challenges of accounting for ecosystem condition, data gaps, and consideration of customary benefits, provide context to the interpretation of our results, and suggest where further research can ameliorate risks.