On December 5, as the depression moved towards the west into the Fijian archipelago, both the Joint Typhoon Warning Center (JTWC) and RSMC Nadi upgraded it to Cyclone Daman.

Later that day Daman also reached its peak intensity by 1-minute means with winds of 205 km/h (125 mph) which made it a Category 3 tropical cyclone on the Saffir-Simpson Hurricane Scale.

Early on December 8, Cyclone Daman brushed by the Fijian island of Cikobia-i-Lau, causing damage to housing, crops and vegetation.

On December 2, the United States Joint Typhoon Warning Center started to monitor a tropical disturbance that had developed within the South Pacific Convergence Zone, about 295 km (185 mi) to the northwest of Apia, Samoa.

[3] At 0600 UTC, on December 6, the JTWC reported that Daman had intensified into a category one tropical cyclone on the Saffir-Simpson Hurricane scale.

[3] Later that day at 1200 UTC, RSMC Nadi reported that Daman had intensified into a category three severe tropical cyclone as it was now sporting a cloud filled eye.

At that time RSMC Nadi forecasted, that there was a possibility that Daman could become a category five severe tropical cyclone, with windspeeds of 215 km/h, (130 mph), within 12 hours.

[6] As the Cyclone peaked in intensity, it started to accelerate towards the southeast and passed over or close to Thikombia island, before becoming under the influence of a mid-level ridge of high pressure.

As it came under the influence of the mid-level ridge of high pressure, Daman turned once more and started to move slowly towards the southeast, into an area of strengthening vertical windshear and cooler sea surface temperatures.

[3][6] Severe Tropical Cyclone Daman impacted Fiji and its dependency of Rotuma between December 5 – 9, where it caused about F$500,000 (2007) ($330,000 US$2007) worth of damage.

[18] Because there were no deaths and only 65 people had been directly affected by Cyclone Daman, the Fijian government, with the help of the Red Cross, decided not to request any International Aid or any external assistance.