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Kei Kecil Island, a vital part of Indonesia’s marine conservation areas, is rich in coastal and marine resources essential for local communities’ economic sustainability. However, increased resource utilization due to population growth and expanding tourism and fisheries sectors poses challenges to environmental sustainability and the potential overexploitation of marine resources. This research analyzes the use of coastal and marine resources in Kei Kecil Island’s conservation areas by coastal communities through a mixed-method approach, including field surveys, stakeholder interviews, and secondary data analysis. The study reveals that fishing and seaweed cultivation are the main sources of income, with significant variations in investment costs and business performance across different sub-districts. Higher investments generally lead to better financial performance, but challenges such as overfishing, destructive fishing practices, limited education, and governance issues threaten resource sustainability. The research suggests a multi-faceted approach involving collaborative management frameworks, investment in education and training, and strengthening regulatory frameworks to ensure the long-term health of the ecosystem and the welfare of local communities.