Abstract This paper presents various methods for calculating the factor of safety (FOS) and utilizes the Isoblock method to analyze the stability of underground powerhouse caverns located in the North-East state of India. A three-dimensional discontinuum analysis simulates the stability of the downstream sidewall, upstream sidewall, and crown of the caverns. The results indicate that the powerhouse cavern contains approximately 2.36% unstable blocks, while the Main Inlet Valve (MIV) and Transformer Caverns exhibit 0.14% and 0.84% unstable blocks, respectively. A comprehensive parametric analysis investigates the impact of joint stiffness, joint friction angle, in-situ stress, cover depth, and the orientation of the cavern's longer axis on stability. The findings reveal that the cavern's stability is significantly influenced by variations in lateral stress ratio and the direction of in-situ principal stress. Stability is optimized at stress ratios between 1.2 and 1.8, with maximum instability observed in the powerhouse cavern, correlating with its larger size. Notably, the stability of the crown is greater than that of the sidewalls, particularly when the cavern orientation is aligned between N68°E and N78°E. The study underscores the importance of these factors in the design and stability assessment of underground structures, providing valuable insights to enhance their safety and reliability. This analysis highlights the necessity for considering joint stiffness and in-situ stress orientations in future designs to mitigate risks associated with instability.