The Coastal Region of Bangladesh is surrounded by the acute crisis of safe drinking water. Potable water scarcity is an acute problem within the coastal regions of Bangladesh. Salinity intrusion in freshwater bodies, arsenic contamination, and low dry season rainfall are some of the reasons behind this deplorable condition. Such is the case in a southwestern district, Satkhira, where safe drinking water is a mirage for people. In this situation, adaptation and utilization of Rainwater Harvesting (RWH) can be considered as a globally sustainable solution among the various technologies to augment freshwater resources. RWH is becoming an integral part of the sustainable water management toolkit gradually. However, some issues are hindering the success of RWH. The absence of technical knowledge, unawareness of hygiene, economic constraints, and lack of training programs on the usage and maintenance of the technology are major reasons for reducing RWH technology's acceptability. This study assessed existing RWHs from several locations of Shyamnagar Upazila of Shatkhira district, incorporating social, economic, and institutional aspects along with policy and application gaps. A mixed-method approach was adopted for the assessment, which included 20 site inspections, questionnaire surveys among the consumers, focus groups discussions with concerning stakeholders, key informant interviews with local government officials. From the outcomes, Strength Weakness Opportunity Threat (SWOT) analysis was done to indicate opportunities and barriers which hinder the success of existing RWHs. We identified RWH as the most appropriate supplementary water source in this region. The substantial factors which enhanced the acceptance of RWH in the water-scarce area were the accessibility of water compared to other sources, improved livelihood potential, security against climate change, and provision from local government and Non-Government Organizations. Furthermore, there was enough quantity of water to support the total water need in household activities. However, a lack of knowledge and awareness was identified as a substantial social constrain of RWH use. High installation costs and the complex financial mechanism were found to be an economic obstruction to the acceptance of this system. There is a significant gap between policy and implementation at the field level. Identifying the opportunities, issues, and constraints of RWH in the study area allows stakeholders and policymakers to understand which programs, mechanisms, and strategies can be adopted for the sustainable implementation of RWH in Bangladesh. This assessment evaluates the socio-economic outcomes of an alternative water source in the coastal region, emphasizing the prominence of social awareness to sustainable development.