The paper uses the Livelihood Vulnerability Index (LVI) to measure the vulnerability of households living in the coastal region of Bangladesh. The results, based on the findings of a survey on 532 households from 12 coastal districts, indicate that rural households are more vulnerable than urban households, while households living in coastal districts are more vulnerable than those living in exterior districts. Finally, households affected primarily by cyclones are found to be more vulnerable than those affected by floods. The higher vulnerability of coastal households stems from poor access to health facilities, a weaker social network as well as from natural disasters and climate variability. The higher vulnerability of rural households is also explained by poor health factors such as lack of access to sanitary toilets. The rural households also have adverse social and demographic profile, weaker social networks and they are more vulnerable to natural disaster and climate variability.