Madagascar’s vast oceanic space hosts distant-water fishing (DWF) fleets from Taiwan, Japan, South Korea, Spain, France and others since the 1960s, making DWF a substantial component of the blue economy. Considering this extensive experience of managing DWF activities for more than 60 years, this paper explores the existing policy frameworks and challenges regarding managing DWF. The results show while it is well equipped legally, the country is struggling to implement its national policies and laws while continuing to adopt new management frameworks. This is due to a limited coherence on long-term policy making and policy implementation, resulting in a mismatch between the two, and a paradoxical vision that promotes DWF without the means to monitor fishing activities and their impacts. The existing institutional settings and governance frameworks make change possible in Madagascar’s approach to DWF. To improve the management of DWF, this paper outlines four pathways. These include (i) a greater attention on the implementation, harmonisation and evaluation of existing policies and projects; (ii) continuing efforts on transparency for DWF operations and contract negotiations; (iii) realigning aspirations and policies with local needs; and (iv) taking better advantage of measures adopted at the regional Indian Ocean level to improve national management of DWF. An efficient implementation of an improved policy and legal framework could contribute to strengthening the governance of DWF activities toward sustaining national benefits while preserving coastal livelihoods.