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This paper describes an integrated climatological‐hydrodynamic method that couples probabilistic hurricane model, storm surge model, inundation model, coastal protection data, and sea level rise projections to estimate tropical cyclone‐induced coastal flood inundation hazard in a coastal megacity‐Shanghai, China. We identify three “worst‐case” scenarios (extracted from over 5,000 synthetic storms) that generate unprecedentedly high flood levels in Shanghai. Nevertheless, we find that the mainland Shanghai is relatively safe from coastal flooding under the current climate, thanks to its high‐standard seawall protection. However, the city is expected to be increasingly at risk due to future sea level rise, with inundation two times and 20 times more likely to occur by mid‐ and late‐21st century, respectively, and inundation depth and area to greatly increase (e.g., 60%–1,360% increase in the inundation area for the “worst cases” by 2,100). The low‐lying and poorly protected area (e.g., Chongming Island) is likely to be moderately affected by flood events with long return periods at the current state but could be largely inundated in future sea‐level‐rise situations.