Ned Lowe, 18, was charged with the intentional homicide of his friend Roger Kamisak, 18, on Tanna Island in July 2015.
Vanuatu police alleged he beat Mr Kamisak with a piece of wood, stabbed him and ran him over with a car. His body was later found in a burned-out car.
The death sparked widespread disorder on Tanna Island, with the victim's friends and relatives allegedly behind two arsons that caused about $2 million damage to the Lowe family's resort, Tanna Lodge, sending the family into police protection.