In this research proposal, we delve into understanding diverse light-matter interaction across different systems using weakly bound helium nanodroplets (HNDs). We focus on single and multi-photon interaction with HNDs. Our single photon studies investigate very rich correlated decay processes offering an insight into processes from the Interatomic Coulombic Decay (ICD) family. Furthermore, we explore the collective dynamics of nanoplasma formation under intense laser pulses.Presenting recent findings, we investigate inelastic electron scattering post-ionization of helium atoms within the droplet, examine ICD processes within pure helium droplets, and employ Free-Electron Laser (FEL) imaging techniques to capture nanoplasma dynamics, offering a comprehensive understanding of light-matter interactions within this unique system.