This study focuses on understanding the historical tsunami events in Eastern Indonesia, specifically the Banda Sea region, by extracting information from the limited and challenging-to-interpret historical records. The oldest detailed account of a tsunami in Indonesia dates back to 1674, documented in the book Waerachtigh Verhael Van de Schlickelijcke Aerdbebinge by Rumphius. The study aims to comprehend the primary source of the tsunami and analyze its characteristics to facilitate future tsunami risk reduction. The methodology includes collecting topography and bathymetry data, conducting landslide scenario analysis, employing a two-layer wave propagation model, and performing spectral analysis. The study utilizes comprehensive datasets, investigates potential landslide scenarios, simulates tsunami propagation, and analyzes frequency characteristics using the fast Fourier transform. The 1674 event yielded a runup height of approximately 50–100 m, whereas this study underestimated the actual runup. To illustrate the tsunami wave along the bay’s coastline, a Hovmöller diagram was employed. By analyzing the Hovmöller diagram, the power spectral density was computed, revealing five prominent period bands: 6.96, 5.16, 4.1, 3.75, and 3.36 min. The integration of these components provides a rigorous approach to understanding tsunami dynamics and enhancing risk assessment and mitigation in the study area.