Abstract Salinization has become a rising global concern due to its notable effects on agriculture and freshwater resources. Coastal region of Bangladesh has been struggling with elevated levels of soil and water salinity, exacerbated by storm surges and rising sea levels. We assessed nutrient and salinity contents in agricultural and homestead lands, and the level of salinity in pond and canal water in six sub-districts in coastal Bangladesh. Finally, using household (HH) survey, focus group discussion (FGD) and key informant interview (KII), we explored the adaptive practices and challenges of salinity issues in agriculture and drinking water management. Soil nitrogen, phosphorus, and potassium contents exhibited significant variations across the sub-districts, which reflect the diversity of agricultural practices and soil management strategies. However, there was no notable difference in soil salinity across the sub-districts, which underscores the commonality of soil salinity as a pressing concern. Shyamnagar (13.99 dS m−1) recorded the highest level of pond water salinity, followed by Assasuni (13.96 dS m−1), Dacope (13.91 dS m−1), Koyra (13.58 dS m−1), Morrelganj (13.33 dS m−1), and Mongla (13.19 dS m−1) sub-districts, which highlights that water salinity decreased from exposed coast to the landward areas. Respondents in HH surveys, FGDs and KIIs identified salinity as a major challenge in agriculture and drinking water. Furthermore, climate-related stresses were recognized as significant challenges impacting crop productivity. The research highlights the feasibility of rainwater harvesting, with 89%–100% of HHs harvest rainwater in HH tanks, as an effective adaptive practice for managing drinking water. The study emphasizes the positive impact of vermicompost in reducing soil salinity levels, which is demonstrated by the 43%–88% of HHs using this practice, indicating its potential as a nature-based solution to address soil salinization. The findings underscore the need for resilient agricultural systems and sustainable water management approaches to tackle these challenges.