Mymensingh municipality is highly vulnerable to earthquake as it is located in close proximity of Madhupur Fault, Dauki Fault and Plate boundary Fault-2 as per a recent finding. As a result of rapid urbanization, economic expansion, population growth, urban-rural migration has made the locality more vulnerable to earthquake. This paper aims to assess the seismic vulnernability and potential economic loss at the event of earthquake for ward 14 of Mymensingh Municipality. For the assessment of seismic hazard, 12 borehole tests and 8 microtremor array measurements have been done. Based on the data of those tests, earthquake intensity map has been prepared using Geographic Information System (GIS) for the study area. For the estimation of economic loss caused by earthquake, potential building damage and human casualty have been estimated. For the assessment of potential building damage, a building inventory of the study area for 735 buildings has been done and potential building damage has been calculated by using fragility curves. Based on the occupancy rate of the study area, possible human injury and death rate have been estimated by using Morbidity Model proposed by Coburn. Combining the building vulnerability and human casualty, the potential economic loss at the event of earthquake for the study area has been estimated.