The capital city of Tuvalu is Funafuti. Funafuti is an atoll that serves as the administrative and transportation center of Tuvalu, a small island nation in the Pacific Ocean. The atoll includes a number of islands and has a lagoon, providing a unique environment for both residents and tourists. The population is relatively small, and the economy largely relies on fishing, agriculture, and tourism. Funafuti has faced challenges related to climate change, particularly rising sea levels, which threaten its existence and highlight the vulnerability of island nations.