India's metropolitan areas, marked by their intricate interdependence, expanding urban population, and high density, face significant disaster risks due to climate change. These challenges often impact neighboring urban villages, triggering cascading effects. This paper explores risk perception dynamics at the local level through a comprehensive study in Gurugram's urban villages. Moving beyond traditional risk assessments, the study highlights the importance of understanding subjective local risk perceptions. It investigates how climate change impacts are perceived within community dynamics, emphasizing inclusive development and community resilience. Using narratives as the main data collection tool, the research captures community members' lived experiences, providing a qualitative analysis of risk perceptions. The findings reveal disparities between top-down adaptation policies and grassroots-level coping strategies shaped by unique local perceptions. The study also underscores the limited acknowledgment of community-based approaches and shared resources in mainstream Disaster Risk Reduction (DRR) practices. Practical implications call for integrating local risk perceptions into planning and decision-making for effective risk management. The paper advocates adopting a Community Resilience framework tailored to Gurugram's urban villages. Ultimately, this paper contributes to enhancing community resilience against various risks by integrating climate change, inclusive development, and narrative data collection, promoting community-centric approaches in urban village contexts.