The Pacific Tsunami Warning Centre says the large earthquake recorded 70 kilometres southwest of Vanuatu late last night caused only a small tsunami.
The US Geological Survey says the 7.3 magnitude earthquake struck at 11:46 PM local time, the largest in a succession of three quakes within two hours.
15 minutes after the quake, the Tsunami Warning Centre issued a regional message ruling out the threat of an ocean-wide tsunami.
The Centre's assistant director, Stuart Weinstein, says information received from their various sea level stations in the region indicated a smaller, local impact.
"Well, small tsunami waves were observed in places like Vanuatu and New Caledonia, but we're talking about waves that, peak to peak, were about 20 centimetres, and of course not destructive."
The centre is continuing to monitor the region for tsunami threats.
Meanwhile, disaster officials in Vanuatu says they're yet to receive any reports of damage, and the Department of geology is expected to dispatch assessment officers today.
