Ecosystem-based Solutions (EbS) harness natural processes to address climate change, bolster resilience, and advance sustainable development. Leveraging the functions of EbS such as carbon sequestration, flood regulation, and soil stabilization, delivers both environmental and socio-economic benefits. Incentive frameworks, such as India’s Green Credit Programme (GCP) and comparable global schemes, are catalyzing private and public investment in ecosystem stewardship. Closely related Nature-based Solutions (NbS) further align biodiversity conservation with human well-being, reinforcing the interconnected goals of ecological health and community resilience. Effective EbS deployment rests on several core principles: enhancing ecosystem and social resilience, fostering multi-sectoral, decentralized governance, integrating adaptive management to address dynamic environmental conditions, and blending rigorous scientific data with local knowledge through participatory decision-making. Prioritizing the minimization of trade-offs and the maximization of benefits ensures that ecological integrity and human livelihoods are advanced in tandem. Despite their promise, EbS encounters obstacles including limited funding, fragmented governance structures, low public awareness, and technical knowledge gaps. To embed EbS within national and international climate strategies, robust monitoring and evaluation systems, targeted capacity building, and innovative financing models are essential. Future policy directions should emphasize multi-stakeholder collaboration, expanded investments in research and education, and scalable funding mechanisms. Overcoming these barriers, EbS and NbS may serve as transformative pathways toward a more resilient, equitable, and sustainable future.