This study systematically compares livelihood vulnerability and resilience to climate-induced natural hazards in Bangladesh and China, two nations with different socioeconomic systems, governance structures, and climatic exposures. The comparison is justified by their shared exposure to frequent climate disasters, such as floods, droughts, and cyclones, despite contrasting adaptation strategies and institutional responses. Using a systematic literature review guided by the PRISMA framework, this research examines 77 peer-reviewed articles. The analysis focuses on three key dimensions of vulnerability: exposure, sensitivity, and adaptive capacity, using clearly defined indicators and sub-indicators derived from literature. Results show Bangladesh’s vulnerabilities are influenced by dependence on agriculture, limited infrastructure, poverty, health risks, and reliance on traditional coping mechanisms. Conversely, China’s vulnerabilities arise from ecological degradation, demographic pressures, regional disparities, and rapid urbanization, often addressed through state-led technological and infrastructural adaptation measures. Bangladesh emphasizes community-based responses, while China focuses on large-scale policy measures, disaster-resilient infrastructure, and the integration of climate adaptation into broader development planning. Both countries face ongoing barriers to effective adaptation. This comparative analysis highlights how different development paths and institutional contexts shape livelihood resilience, emphasizing the importance of context-specific adaptation, cross-country learning, and inclusive policy frameworks.