Purpose: Conducting vulnerability and capacity assessment (VCA) becomes imperative as it gives an insight about the means people employ to cope with emergencies, and it is the firmest basis on which we can build appropriate and cost-effective actions for preparedness and mitigation aspects in disaster management. VCA was conducted to delineate risk zones among the sample villages and group them in risk zones (high, moderate, and low) depending upon the persisting vulnerabilities due to natural hazards, impact caused by the Tsunami in 2004, implementation of various disaster management aspects, and assessing the capacities of the respective sample villages.Design methodology: Overall methodology was based on collection, collation, and analysis of baseline and historical data. A questionnaire was developed for assessing capacity and vulnerability of the selected villages of three districts, namely, Cuddalore, Nagapattinam, and Kanniyakumari along the Tamil Nadu coast.Findings: In this article, it was found that out of the nine sample villages, four villages, namely, Devanampattinam, Pichavaram, Tarangambadi, and Melamanakuddi, fell under high-risk zones, another four, namely, Samiyarpettai, Poompuhar, Kaniyakumari, and Kolachel, fell under medium risk zones as compared with just one, ie,Velanganni, which fell under low-risk zone.Practical implications/Originality: The most effective approach to reduce the long-term impact of natural hazards is to incorporate natural hazard assessment and mitigation activities into the process of integrated development planning and investment project formulation and implementation. The key to reduce vulnerabilities is through training and education, which are of critical importance by incorporating VCA into any development planning process and thereby upgrade the standard of living to ensure sustained well-being and prosperity and achieve sustainability.