Tourism bridges different aspects together. It depends most of its assets on the abundance of nature. This study was conducted in Danawan Lake, located at Sitio Darayaw, Panaytayan, Mansalay, Oriental Mindoro. This study, in partnership with the local government unit, is focused on the potential assessment of Danawan, a mountain lake, with a specific lens on gauging community perception when it comes to tourism development. Aside from the physical attributes of a destination, community participation in tourism development is very important as it will dictate its sustainability. This ethnographic study employed a qualitative approach from SWOT analysis through observation, mapping, and personal interviews. The results showed that Danawan Lake has potential for adventure and ecotourism, but its sustainable development requires careful consideration of both strengths and weaknesses, opportunities, and threats. The indigenous community living near the lake has signified their acceptance of tourism activities and development in the area if advanced communication is considered. Collaboration and inclusivity should be at hand to attain the desired goals reflecting that the community considers the lake sacred. Future researchers may use other alternative potential assessment tools to gain more in-depth findings.