By analysing the data for 1863/64-1976/77, the paper attempts to study the pattern of income distribution and poverty in Bangladesh, and it also compares the socioeconomic status of the country in mid-1970s with other developing countries of Asia, Africa and Latin America. There has been a drastic deterioration in inequality and poverty in recent years, and this disturbing finding is reinforced by the fact that Bangladesh occupies the lowest position in the Third World in terms of a composite social index. The broad policy recommendation is that relatively more attention should be given to the social sectors while allocating resources for the country’s future development.