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Post-disaster recovery processes should be considered as opportunities for development, by revitalizing the local economy and upgrading livelihoods and living conditions. Social capital, which is defined as a function of trust, social norms, participation, and network, can play an important role in recovery. This paper examines the role of social capital in the post earthquake rehabilitation and reconstruction programs in two cases: Kobe, Japan and Gujarat, India. The Kobe case study shows that the community with social capital and with a tradition of community activities can pro-actively participate in the reconstruction program, and thereby can make a successful and speedy recovery. A model for bonding, bridging and linking social capital was developed from the Kobe experience, and was applied to Gujarat in four different communities. It was observed that the community with social capital records the highest …