The Coastal Embankment Project (CEP), one of the largest engineering undertakings in Bangladesh, was commissioned in early 1960s with a view to reclaiming coastal land for enhancing agricultural production. The embankments constructed under the project are questioned for their wide-spread negative impacts on the biophysical and social environments. This research aims to articulate the role of the embankments in exposing the coastal communities to vulnerable situations. Three polders from the districts of Khulna and Satkhira were chosen for case studies. Review of project documents and in-depth interviews were adopted for data collection. Analysis of vulnerability reveals that the perspectives of vulnerability (hazards/perturbations/stressors) change over time and the elements of vulnerability (exposure, sensitivity and resilience) manifest in different ways as the embankments transform the coastal social-ecological settings. Findings also show that, despite the havocs the coastal embankments in the southwest of Bangladesh have been causing, the communities still consider them as a lifeline. The coastal embankments have brought a sense of permanence in the communities by creating a flood-free environment and by facilitating many secondary benefits. The communities' perception of development is centred on the embankments and they believe that a stronger embankment system is vital for enhancement of their overall socio-economic development. This study is useful for understanding the vulnerability dynamics in the context of an ecologically sensitive deltaic plain for preventing development projects from becoming counterproductive.