The ongoing impacts of climate change, increasing sea levels, inclement weather conditions, and unpredicted natural events are causing concerns across the globe. This paper proposes to document Small Island Developing States (SIDS) challenges in ensuring sustainable development and the associated opportunities using the narrative review method. Energy is core and holds predominance in developmental concerns and policy matters. SIDS, most of the time, remains under severe fiscal burdens because of imported fuels and subsidized utility tariffs to most of the categories of customers. Findings highlight the need to encourage investment in renewable energy, resource preservation, climate resilience, and community involvement. The paper concludes by suggesting the need for collaborative efforts involving governments, local communities, international organizations, and the private sector to embrace the opportunities for energy efficiency and sustainable practices in SIDS. It advocates having a long-term plan focusing on practical and impactful solutions like focusing on low-cost energy conservation in residential and commercial sectors to keep SIDS afloat and give their citizens a sustainable and safe future.