As the second lowest-lying country in the world, and because of its fragile economy and social and environmental vulnerabilities, Tuvalu is severely affected by the impacts of climate change. The country has been very active in developing ways of responding to these challenges at the national policy level and has also included the issue of loss and damage in official documents since 2012. At the same time, Tuvalu has played an active role in international loss and damage negotiations, including advocating for a separate article on loss and damage in the Paris Agreement. This chapter explores how Tuvalu’s policy actors make sense of and attempt to govern loss and damage at the national level. Using interpretive policy analysis and thirteen semi-structured interviews, it suggests that loss and damage in Tuvalu is developing as a “complex governance system” with competencies and agency spanning across multiple scales. The chapter finds that loss and damage does not feature as a stand-alone policy domain, nor is it explicitly distinguished from adaptation, but rather is treated as an issue which cuts across different sectors and policy areas, including climate-induced human mobility, infrastructure investment, national sovereignty and the protection of the country’s exclusive economic zone.