Abstract: Urban flooding in Chittagong City usually occurs during the monsoon season and a rainwater harvesting (RWH) system can be used as a remedial measure. This study examines the feasibility of rain barrel RWH system at a distributed scale within an urbanized area located in the northwestern part of Chittagong City that experiences flash flooding on a regular basis. For flood modeling, the storm water management model (SWMM) was employed with rain barrel low-impact development (LID) as a flood reduction measure. The Hydrologic Engineering Center’s River Analysis System (HEC-RAS) inundation model was coupled with SWMM to observe the detailed and spatial extent of flood reduction. Compared to SWMM simulated floods, the simulated inundation depth using remote sensing data and the HEC-RAS showed a reasonable match, i.e., the correlation coefficients were found to be 0.70 and 0.98, respectively. Finally, using LID, i.e., RWH, a reduction of 28.66% could be achieved for reducing flood extent. Moreover, the study showed that 10%–60% imperviousness of the subcatchment area can yield a monthly RWH potential of 0.04–0.45 m3 from a square meter of rooftop area. The model can be used for necessary decision making for flood reduction and to establish a distributed RWH system in the study area.