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