The dead man is from the island of Tanna, and the Vanuatu Daily Post reports that he was hacked with a knife by someone from the island of Malekula.
The houses were reportedly set on fire as an act of revenge by relatives of the dead man.
The deceased is said to be a father of four children and a regular RSE worker who had his own businesses.
His body was flown back to his home island on Saturday.
The fire brigade could have stopped the extent of the damage but was ordered to go away and not to respond as the fire was intentionally set, the newspaper reports.
At the moment, it is still unknown whether the police have arrested the suspects that caused the death and fire.
Speaking to the Daily Post, a spokesperson for the Erakor Village Council of Chiefs said while the situation is still tense it is important that both families let the law deal with the problem.
The chiefs from Erakor have been informed about the incidents and plan to visit and talk with the chiefs and families of both parties once the tension reduces, he added.
“We, the Erakor village council, have a yearly plan that bans villagers and settlers from organising weddings from November to December.
“Our yearly plan has been broadcasted but somehow this particular family has decided to perform a wedding within that period.
“The idea of banning weddings from November to December is to avoid such problems destroying everyone’s Christmas festive season, a time for peace and unity.”
- PNC sources