Abstract: Foreign aid is known as an outcome of the cold war between the USA and the (former) Soviet Union. Bangladesh, as one of the least developed countries, has been receiving a fair amount of aid but a very slow and steady outcome of foreign aid has been observed. Although aid has visible and invisible impacts, Bangladesh has, somehow, failed to achieve either of them. The article tries to find out the real impacts of foreign aid in the economy. At the end, some causes of improper utilization of aid have been shown.