Dhaka city, the capital of Bangladesh and home for more than 10 million people, has been affected by seasonal flooding almost in every year, however, the situation aggravates depending on rainfall and surrounding river waters. The aim of this paper is to delineate the flood extent in Dhaka city using digital elevation model (DEM), an integral part of geographic information system. Catastrophic floods of the 1988 and 1998 events are taken into consideration. Hydro-meteorological assessment of these events revealed that the 1988 flood was severe due to the lack of flood protection in the city together with transboundary flow of the major rivers while the 1998 flood was become deluge due to incessant monsoonal downpour along with early peaked of the river water levels. The 1998 event has done colossal damage in the city compare to the 1988 event. Flood extent estimation showed that DEM data is very precious to model inundation in the city, however, in order to be spatially explicit flood model, high resolution DEM is necessary. Finally, flood management issues are reviewed and found that combination of structural and nonstructural measures are necessary to help reducing flood induced losses and damage in the city.