<p>This study investigates the complex processes of tsunami wave propagation in the waters of Xuande Atoll to assess tsunami hazards from potential earthquakes in the Manila subduction zone. The investigation employs numerical simulations of tsunami wave generation and propagation using locally refined grids for the atoll topography. Analysis reveals that tsunami waves oscillating on the reef flat can generate a higher secondary wave that exceeds the leading wave amplitude. The study identifies high-risk areas primarily concentrated on the eastern reef facing the source area, with local high tsunami hazard points typically resulting from wave oscillations on the reef. For magnitude 8.9 earthquake tsunamis, the maximum wave height on the atoll may exceed 4 m. The research demonstrates that heterogeneous slip and epicenter position significantly influence wave size and spatial distribution, with epicenter location particularly affecting incident wave direction and subsequent tsunami hazard distribution across Xuande Atoll.</p>