Peru’s small-scale fisheries (SSFs), sustaining ~55000 fishers and exploiting differentially >250 marine species within the Humboldt Current’s exceptionally productive yet climate-vulnerable ecosystem, face critical sustainability challenges rooted in the intersection of marine megadiversity, socioeconomic pressure, and changing environmental scenario. This chapter synthesizes persistent issues, inadequate species monitoring (>30% of landed taxa lack biological data), systematic biodiversity masking (e.g., generic “toyos” labeling concealing impacted shark exploitation), and species displacements, alongside emerging solutions across Peru’s SSFs. The blue economy framework offers a transformative pathway to address Peru’s paradox of global fishery leadership coupled with extreme climate fragility, demanding governance innovations that transcend isolated interventions like marine protected areas, which alone cannot resolve systemic gaps. Evidence underscores that resilience hinges on adaptive comanagement blending traditional knowledge with continuous at-sea monitoring to track ecological variability, formalizing traceability to eliminate mislabeling, mainstreaming climate-adapted practices, and empowering fishers through direct participatory governance. By institutionalizing these approaches, Peru can redefine SSFs from extractive sectors into regenerative forces, balancing ecological stewardship of its exceptional biodiversity with sustained livelihoods for coastal communities facing unprecedented environmental change.