Kailasahar is governed by the Kailasahar Municipal Council, which manages local civic administration, sanitation, water supply, and urban development. The city is divided into multiple wards, each represented by an elected councilor.
As the administrative headquarters of the Unakoti district, Kailasahar hosts key district-level government offices, including the offices of the District Magistrate & Collector, the Superintendent of Police, and the District Courts. Politically, Kailasahar falls under the Tripura Legislative Assembly and is part of the Tripura East Lok Sabha constituency for national parliamentary representation.

