Disasters pose significant threats to ecosystems. This study focuses on Himachal Pradesh, situated in the western Himalayas. The region faces natural hazards, including flash floods, landslides, avalanches, and climate-induced events, resulting in an economic loss of $4.2 billion in the year 2022 due to extreme weather. The need for proactive disaster management strategies in Himachal Pradesh is paramount. The study provides a comprehensive overview of the geographical, administrative, and climatic features of Himachal Pradesh, highlighting its vulnerability to various disasters. It explores the concepts of disaster risk and vulnerability from hazard, vulnerability, and geographical perspectives, addressing social, economic, environmental, and physical dimensions. Focusing on flood vulnerability in Kullu district, the research employs advanced mathematical methods like Shannon’s Entropy and Fuzzy Technique for Order of Preference. The Himachal Pradesh State Policy on Disaster Management, aligned with the National Policy on Disaster Management, provides a framework for a holistic, proactive, and community-based strategy, although lacks a comprehensive approach to addressing localized vulnerabilities, particularly in integrating community-specific needs and advanced risk assessment methods, limiting its effectiveness in practical disaster management. This study proposes sustainable disaster management strategies, emphasizing the integration of disaster risk reduction (DRR) principles into development initiatives. The findings contribute to informed decision-making for disaster mitigation and adaptation strategies in the region, offering valuable insights for enhancing disaster resilience not only in Kullu district but potentially across the entire state of Himachal Pradesh and regions with similar challenges across the world.