Tidal waves flooded towns in the Indonesian province of Aceh, close to the epicentre of the quake.
The Patong beach area of Phuket in Thailand was also wrecked by flood waters.
Foreign tourists were caught up in the destruction caused when the tidal wave hit Phuket.
The quake damaged buildings in the Malaysian capital, Kuala Lumpur.
A scientist in Indonesia points to a seismograph reading - the earthquake with a 8.9 magnitude is the biggest for 40 years.
Cars and debris were swept into the water in the southern Indian city of Madras.