This study aims to identify the transformation process of coastal village communities in building resilience to disasters. We develop our theoretical framework based on the concepts of socio-ecological resilience, transformative resilience, panarchy systems and resilience capacities. Using the qualitative research methods, we examine two cases of coastal villages in Indonesia that represent differing levels of socio-economic vulnerability and community responses to disasters. The findings of this study highlight that the building of transformative resilience is affected by the transformation phases, the heterogeneity and interdependence of capacities, and the intensity of resources used as capacity. The building process of transformative resilience cannot happen instantly but requires an ideal timeframe for transitional phase navigation in which communities form valley and peak waves to create a perfect phase in each regime. This condition triggers the achievement of high resilience conditions in the face of disasters. Although endogenous capacities, in the form of local social networks and agents of change, have become the key aspects of resilience, openness to external conditions and collaborations are also essential in nurturing transformation. Our findings suggest an important implication for policy, in that a long-term transformation process should be taken into account in policymaking. Further, in enhancing the resilience of coastal communities it is important to build their innovative capacities, among other things, by nurturing their networks through various opportunities and exposures to external parties which enable collaborations and exchanges of knowledge.