In countries undergoing development and possessing ample natural water resources, such as Indonesia, fisheries play a significant role in wealth generation. The livelihood of small-scale fishermen in ecologically sensitive tourism locations and major fishery producers has become notably prominent with the help of empowering action. This study examined the effect of livelihood capital measurements on environmental sustainability with the act of empowering as a moderator. The study used the quantitative technique, including Partial Least Squares-Structural Model (PLS-SEM), a statistical approach combining factor analysis and regression analysis, to evaluate the connections among variables within a model. The research investigation was conducted in Cirebon, Cilacap, and Surabaya using a survey of 300 micro-scale and small-scale fishermen, since these locations are the major fishery locations in Indonesia and also popular tourist destinations. The results show that human, physical, and financial factors contribute positively to the environmental sustainability of small-scale fishermen, and that the act of empowering positively moderates physical capital to environmental business sustainability but negatively moderates financial capital to environmental business sustainability. These research findings can contribute to the ongoing debate regarding the promotion of livelihood capital measurements. Additionally, they have policy implications for improving the livelihood of traditional small-scale fishermen and promoting sustainable development in developing countries, particularly Indonesia. © 2026 Elsevier Ltd.