So far, 33 people have been moved to safer places inland. Others have been encouraged to move their boats away from the iceberg.
Innaarsuit is about 950km north of Nuuk, the country's capital. The village's residents are mostly hunters and fishermen in an isolated area most easily reached by boat or helicopter.
The iceberg is 200m wide -- nearly the length of two football fields -- and rises 90m above sea level, according to the New York Times. In terrifying pictures, it literally casts a shadow on a hilly outcropping of Innaarsuit, dwarfing boats, homes and businesses.
Residents don't need lengthy memories to know the effect even a small tsunami could have on the country that doubles as the world's biggest island.
Last June, according to Quartz, a landslide caused by a 4.1 magnitude earthquake that struck 17 miles north of the village of Nuugaatsiaq partly triggered a tsunami that washed away 11 homes and killed four people.
Video posted to Facebook, then to YouTube, showed villagers sprinting away from approaching waves washing over seaside homes.
Tsunamis caused by landslides in bays can rise to incredible heights, travel at devastating speeds, and cause massive destruction, according to Quartz.
A similar giant wave was thought to have destroyed the Swiss city of Geneva in A.D. 563, the Economist wrote.
Of course, even if there isn't some giant, city-destroying Hollywood-style tsunami, there are other dangers from rising water. Nearby rivers could overflow their banks, for example, threatening homes and other buildings that don't face the sea. And Innaarsuit's power plant is also on the coast, meaning flooding in a very specific place could send Innaarsuit into the Dark Ages.
A Danish Royal Navy ship is standing by, according to the CBC, in case the situation sours.
"We can feel the concern among the residents," said Susanna Eliasson, a member of the village council, told CBC. "We are used to big icebergs, but we haven't seen such a big one before."
For now, the residents of Innaarsuit are watching the weather. The area will see relatively sedate winds for the next week. And on Sunday, July 22, it's supposed to rain.