In this study, we present a scenario to evaluate the backwater impacts on upstream of the Polavaram dam during floods. For this purpose, annual peak discharges across the different gauge stations in river stretch considered for flood frequency analysis. Statistical analysis is carried out for discharge data to estimate probable flood discharge values for 1000 and 10,000 years return period along with 0.1 and 0.14 million m3/s discharge. Furthermore, the resulting flood discharge values are converted to water level forecasts using a steady and unsteady flow hydraulic model, such as HEC-RAS. The water surface elevation at Bhadrachalam river stations with and without dam was estimated for 1000 and 10,000 years discharge. Unsteady 2D flow simulations with and without the dam with full closure and partial closure modes of gate operation were analysed. The results showed that with half of the gates as open and all gates closed, water surface elevation of 62.34 m and 72.34 m was obtained at Bhadrachalam for 1000 and 10,000 years. The 2D unsteady flow simulations revealed that at improper gate operations, even with a flow of 0.1 million m3/s, water levels at Bhadrachalam town will be high enough to submerge built-up areas and nearby villages.