Low-lying atoll chains are especially vulnerable to the effects of slow-onset, sea-level rise. Resettlement of at-risk populations will be the ultimate consequence, and many island communities in the Pacific, at risk from rising sea levels, will have to move from their island homes during the coming years. This article uses a case study approach to examine the relocation of the Carteret Islands, Papua New Guinea. To date, the Carteret Islands is the most widely publicised relocation, and as such, highlights many of the issues and obstacles that future climate-induced resettlement projects will face. Based on site visits and interviews with all key stakeholder groups, and applying Cernea's Impoverishment, Risks, and Reconstruction model to the current relocation, findings highlight the issues faced by the displaced community and other stakeholders. Land security, the creation of livelihoods, and support from host communities are all key components to the success of any resettlement scheme.