The purpose of the paper is to explore the integration of community-based rehabilitation approach for sustainable solution of climate displacement problem in the coastal area of Bangladesh. The study conducted based on primary data sources where 385 household survey, 8 Key Informant Interview and 6 Focus Group discussion were done. The qualitative data have been analyzed through “narrative analyses beside quantitative data have been interpreted by IBM SPSS Statistics v-20 – 64bit software, respectively. The study reveals that indigenous knowledge is the effective mechanism for ensuring sustainable adaptation in response to the perceived impact of climate change induced disasters and displacement problem in southeastern coastal area. However, adaptation strategies are unlikely to be effective without an understanding of the communities perceptions of climate change. Nevertheless, the recent decades there have been substantial plantations and construction of embankment, but these and other options have been found to be impractical and ineffective in reducing disasters in coastal areas. Therefore, Community Based Rehabilitation Program not only ensures their permanent settlement but also ensures their dignity, local livelihood , culture, society, and wisdom.