As climate change intensifies coastal hazards globally, understanding and quantifying community vulnerability is crucial for effective adaptation strategies. This study examines the application of indicators in planning adaptive capacity strategies to reduce community vulnerability to tsunami hazards (THs). Using a case study approach in Mehuin, a coastal community in southern Chile susceptible to tsunamis, we identified and validated specific indicators through both quantitative and qualitative methods. Secondary data sources were used to initially identify indicators, which were then validated through 12 in-depth interviews with community representatives and local emergency management actors. The Analytic Hierarchy Process was employed to determine the relative weights of indicators in adaptive capacity planning. A total of 25 specific indicators were identified for Mehuin, grouped into 7 key issues: human exposure, physical exposure, geographical factors, socioeconomic conditions, psychological factors, governance, and planning capacities. The most influential indicators for adaptive capacity planning were found to be preparedness and planning-related, including the existence of emergency plans (14.33% weight), quality of urban/regional plans (14.20%), and building codes (10.79%). Socioeconomic factors like collective action (9.06%) and social networks (5.61%) were also significant. The least influential factors were building structure (0.16%) and housing density (0.36%). The indicators provide insights into community vulnerabilities and can inform targeted strategies to enhance adaptive capacity. This study concludes that local-scale indicators are crucial for identifying community-specific vulnerabilities and priorities in tsunami preparedness. However, their application requires careful contextual consideration. The findings demonstrate the importance of integrating community perspectives in vulnerability assessments and adaptive planning for coastal hazards. This research advances evidence-based approaches for disaster risk reduction and sustainable development in coastal regions, aligning with UN Sustainable Development Goals 11 (Sustainable Cities and Communities) and 13 (Climate Action).