This study evaluated the flood vulnerability of Bahir Dar City, Ethiopia, using an indicator-based method that considered physical, social, and economic factors. Indicators were chosen based on literature review and baseline survey data and adapted to local conditions. GIS-based tools were used to create vulnerability maps that showed the spatial distribution of flood risk and priority areas for intervention. The study revealed that the city is highly vulnerable to flooding due to heavy rainfalls, insufficient infrastructure, and poor maintenance. The result shows that 10% of the city was characterized by a very high vulnerability index, 63% of the area was characterized by a high vulnerability index, and 3% of the city was characterized very low vulnerability index. The results suggest that effective flood risk management planning should take into account multiple flooding sources and scenarios, as well as alternative solutions for uncertain future conditions. The development of integrated flood management plans and strategies to reduce vulnerability and enhance flood resilience, through the development of a policy framework for low-impact development, job creation, and structural measures such as improving drainage capacity and implementing flood zoning and green infrastructure is essential. These plans should assess both conventional and innovative flood protection solutions to determine their efficiency in decreasing flood extent, depth, duration, flow velocity, and related damages.