Indigenous (or traditional) and local knowledge (ILK) systems are increasingly recognized as a potential solution for climate change adaptation and disaster risk reduction. Most ILK systems incorporate or are built around several nature-based approaches in the low-lying coasts such as social and livelihood systems relying on mangrove ecosystems. However, ILK systems have their limits to adaptation and hence are not fully capable of overcoming the magnitude of threats posed by climate change or extreme hazards to the vulnerable communities living in in low-lying coasts or Small Islands Developing States (SIDS). The potential of ILK needs reinforcement by technological innovations as well as adequate investments to reengineer solutions. For that, the role of capacity building is important to enabling community or indigenous groups to systematically identify and document ILK practices, assess vulnerabilities of ILK, co-develop scientifically robust solutions based on ILK, and institute mechanisms for the promotion and upscaling of solutions. This chapter proposes a comprehensive approach for building local capacities around ILK for climate change adaptation and resilience building against future risks. The chapter stresses a sustainable approach to capacity building that could be retained, improved, and continued over time.