Drawing on a case study from Ternate Island, a densely populated volcanic island in Eastern Indonesia, this research illustrates how multi-hazards and extreme weather events are likely to compound and cascade, with serious consequences for sustainable development in small island context. At the heart of Ternate Island sits the active Gamalama volcano, posing a constant eruption threat. Its location within the Ring of Fire further exposes the island to the risks of tsunamis and earthquakes. Additionally, the island’s physical features make it highly susceptible to flooding, landslides, and windstorms. Rapid urbanization has led to significant coastal alterations, increasing exposure to hazards. Ternate’s small-island characteristics include limited resources, few evacuation options, vulnerable infrastructure, and inadequate resilience planning. Combining GIS multi-hazard mapping with a structured survey in 60 villages in Ternate, this case study investigates the multi-hazard exposure faced by the local population and land coverage. The findings suggest significant gaps between village chiefs’ perceptions of the types of hazards and the multi-hazard assessment in each village. Out of 60 village chiefs surveyed, 42 (70%) are aware of earthquake risks, 17 (28%) recognize tsunami threats, and 39 see volcanoes as a danger. GIS assessments show that earthquakes could impact all villages, tsunamis could affect 46 villages (77%), and volcanoes could threaten 39 villages. The hazard map indicates that 32 villages are at risk of flash floods and 37 are at risk of landslides, and extreme weather could affect all villages. Additionally, 42 coastal villages on Ternate Island face potential extreme wave and abrasion disasters, but only 18 chiefs acknowledge extreme weather as a threat. The paper argues that addressing the cognitive biases reflected in the perceptions of community leaders requires transdisciplinary dialogue and engagement.