The quake struck at 6:33 a.m. local time on Friday, about 5 kilometers (3 miles) southwest of Norsup, which is a village on Malakula island.
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The 7.3 magnitude quake triggered tsunami warnings across the island nation.
The waves could reach between one and three metres above the tide level along some coasts of Vanuatu, with waves up to 0.3m possible for Fiji, New Caledonia, Papua New Guinea, Solomon Islands and Tuvalu.
The quake, which occurred at a depth of 35 kilometres (21 miles) was originally measured at 7.3 magnitude by the National Tsunami Warning Center (NTWC).
The Ministry of Civil Defence and Emergency Management says there is no current sign of a tsunami threat to New Zealand and the situation is being monitored.
Authorities said they hadn’t yet received any reports of damage or injuries.
It was the fourth strong natural disaster to strike Vanuatu this month, although none have caused problems.
The Pacific island was a year ago struck by a volcanic eruption, an natural disaster and a cyclone in the space of a few weeks, the Guardian reports, from which the country is still recovering.
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The magnitude-7 quake hit near Malekula Island. The nation is also prone to volcanoes and cyclones.
