Currently, more rampant and severe natural disasters have increased the threat of displaced population and refugees requiring relief shelters, not only during the catastrophe but also in the aftermath, for permanent replacement of damaged homes. In Malaysia, flood accounts for 62% of all-natural disasters and had increased in severity over the last decade. This paper aims at examining the milieu on the threats of flood disaster, policies and strategies, and recovery process focusing on post-disaster shelters for victims. An in-depth systematic literature review data shows that efforts by the relevant agencies are geared towards the disaster response and the recovery on infrastructure itself without proper strategy and provision on designated relief shelters (temporary or permanent) as a crucial part of Disaster Risk Management (DRM). Victims are often placed in temporary shelters in school and community buildings on higher grounds over the critical flooding period. These measures are insufficient for more severe scenario, where massive damage to houses occurred, requiring longer recovery periods disrupting the function of schools and community buildings. For long term solutions, more cohesive efforts by the agencies are essential to include post-disaster shelters as a critical part of disaster relief strategies learning from the global counterparts. From the review of global solutions and adapting from models from other countries, this paper proposes the design and management framework for efficient temporary and permanent post-disaster shelters to offer acceptable standard of living for displaced victims.