Flood hazards are common in Bhutan as a result of torrential rainfall. Historical flooding events also point to flooding during the main monsoon season of the year, which has had a huge impact in many parts of the country. To account for climate change patterns in flood hazards in Bhutan, 116 historical flood events between 1968 and 2020 for 20 districts were retrieved and reviewed. The preliminary review revealed that the frequency of flood occurrence has increased by three times in recent years. In this study, seven flood vulnerability (FV) indicators were considered. Five are the attributes of historical floods, classified into a number of incidents for flood events, fatalities, affected population, and infrastructure damages including economic losses. Additionally, the highest annual rainfall and existence of a flood map were other two indicators considered. Using historical data, flood hazard and impact zonation were performed. The analytic hierarchy process (AHP) method was employed to derive a multi-criteria decision model. This resulted in priority ranking of the seven FV indicators, broadly classified into social, physical/economic, and environmental. Thereafter, an indicator-based weighted method was used to develop the district flood vulnerability index (DFVI) map of Bhutan. The DFVI map should help researchers understand the flood vulnerability scenarios in Bhutan and use these to mediate flood hazard and risk management. According to the study, FVI is very high in Chhukha, Punakha, Sarpang, and Trashigang districts, and the index ranges between 0.75 to 1.0.