Abstract: The southern Asian country of Bangladesh, bordered by India and Myanmar, has a population of approximately 164 million people. The Bangladesh economy has grown an average of six percent a year over the last 6 years and almost 12% of Bangladeshi GDP in 2009 and 2010 and employs approximately four million people. The export-oriented Bangladeshi garment manufacturing industry has boomed into a $22 billion dollar a year. The Bangladeshi textile and garment manufacturing sector is fuelled by young, urbanizing, workers many of whom are women. With the majority of production destined for U.S. and European markets, Bangladesh’s ready-made garment industry now accounts for approximately 78% of total exports, second only to China as the world’s largest apparel exporter. Ready-Made Garment (RMG) industry has provided enormous opportunities to Bangladeshi women to work outside the home for wages. It is opined in the literature that this change has contributed and increased emphasis on poverty reduction through employment. The development of Garments Industry is considered as the priority area in the development policy in Bangladesh. The young entrepreneurs are engaged in varied form of small and medium scale garments industry which comprises of products. This study is conducted to analyze the contribution and prospects of Readymade Garments Industry in Bangladesh. The findings of this paper show that Bangladesh has a great opportunity to earn a great foreign currency through developing readymade garments industry and contribute economic development.