The 25 October 2010 Mentawai tsunami earthquake (Mw 7.8) ruptured the shallow portion of the Sunda megathrust seaward of the Mentawai Islands, offshore of Sumatra, Indonesia, generating a strong tsunami that took 509 lives. The rupture zone was updip of those of the 12 September 2007 Mw 8.5 and 7.9 underthrusting earthquakes. High-rate (1 s sampling) GPS instruments of the Sumatra GPS Array network deployed on the Mentawai Islands and Sumatra mainland recorded time-varying and static ground displacements at epicentral distances from 49 to 322 km. Azimuthally distributed tsunami recordings from two deepwater sensors and two tide gauges that have local high-resolution bathymetric information provide additional constraints on the source process. Finite-fault rupture models, obtained by joint inversion of the high-rate (hr)-GPS time series and numerous teleseismic broadband P and S wave seismograms together with iterative forward modeling of the tsunami recordings, indicate rupture propagation ~50 km up dip and ~100 km northwest along strike from the hypocenter, with a rupture velocity of ~1.8 km/s. Subregions with large slip extend from 7 to 10 km depth ~80 km northwest from the hypocenter with a maximum slip of 8 m and from ~5 km depth to beneath thin horizontal sedimentary layers beyond the prism deformation front for ~100 km along strike, with a localized region having >15 m of slip. The seismic moment is 7.2 × 1020 N m. The rupture model indicates that local heterogeneities in the shallow megathrust can accumulate strain that allows some regions near the toe of accretionary prisms to fail in tsunami earthquakes.