: In Manipur, the micro, small and medium enterprises (MSMEs) sector acts as an important contributor in the region’s fostering employment opportunities and economy, socio-economic development and income generation. Surrounded by the unique socio-economic landscape of Manipur, MSMEs face multifaceted challenges ranging from limited vulnerability against natural calamities to access to finance. Micro insurance comes into view as a promising tool to mitigate these risks, promoting resilience and providing financial protection among MSMEs. Micro insurance provides protection against risks such as accidents, natural disasters, illness, and other unforeseen events. Micro insurance enables MSMEs to sustain their operations, maintain livelihood and safeguard assets by providing financial security and mitigating the adverse impacts of risks. This study aims to unveil the opportunities and barriers in integrating micro insurance within the sector by analyzing the current state of micro insurance penetration and its impact on MSMEs in Manipur. The study explores the accessibility, affordability and awareness of micro insurance products among MSMEs through qualitative and quantitative analysis, addressing the factors influencing their adoption. Moreover, the study examines the effectiveness of micro insurance schemes in addressing the specific vulnerabilities and needs of MSMEs in Manipur.