Purpose: Bangladesh is one of the most disaster‐prone countries in the world. Natural disasters adversely affect the country's economy and deter its development. Thus preparedness for the disasters, along with effective prevention and mitigation measures, is imperative for sustainable development of the country. The purpose of this paper is to examine the present state of disaster preparedness in the country with special attention to the more frequent and damaging disasters – flood and cyclone.Design/methodology/approach: A detailed study of the effects of natural disasters, disaster prevention and mitigation measures, and institutional setting for disaster preparedness was undertaken.Findings: Plans and programs have been formulated to manage natural disasters. In a “Cyclone Preparedness Program”, trained volunteers facilitate emergency response and proper use of the multi‐purpose shelters. Within an institutional framework for disaster management, several Non‐Government Organizations (NGOs) work for disaster preparedness alongside the government organizations. Their formal and nonformal education programs on disaster preparedness have a common objective of promoting resilient and sustainable communities.Practical implications: Planning and design of structural interventions for prevention and mitigation of natural disasters should be done more carefully to avoid adverse impacts on the environment. A participatory approach is essential in this process. Education and awareness‐building programs need wider and easier access to the people.Originality/value: The paper concludes that the institutional arrangement for cyclone preparedness and response is unique and efficient, and that participation of NGOs in the preparedness program contributes significantly toward sustainable development. These lessons will be important for development planning in other sectors.