Abstract: The role of development assistance in economic development of the developing countries is a much-talked and much-debated issue. There is a significant literature to show that such assistance could cover the investment gap of the developing countries and lead to economic growth. The opposite arguments also hold that development assistance has no role in the development process. Bangladesh has a long tradition of injecting foreign aid/foreign development assistance in its development finance. This study attempts to inquire the necessity of taking development assistance for Bangladesh and the its effectiveness in the development process of the country by analyzing aid flow and trend, terms of repayment, ways of uses and beneficiaries as well. A regression model is developed-assuming GDP Growth as the function of Aid Inflows-and the result is incorporated in the policy debate.