The present study was conducted to determine the present status including general information, feeding, breeding, housing, and milking etc. and costs & returns of small dairy farms, to compare the productive and reproductive performance of crossbred and indigenous cows and to make recommendation for development of small scales dairy farm. With this view, the empirical data were collected by using pre tested questionnaire. The study was conducted at 8 thanas in Mymensingh district, and four months-long survey was diminished on thirty small dairy owners. It appeared from the study that 57% farm owners belong to business class and remaining 43 per cent to different categories. Fifty three per cent took dairying as a side-business whereas only 47 per cent took it as a main business enterprise. Major percentage of farm owner education level that was Higher Secondary level (60%) and the average number of animal per farm was 13.01. The average monthly income of farm owners found in the study area was Tk. 4387. It was observed that farm owners had 85.4% crossbred (like Friesian cross and Jersey cross) and was 14.6% indigenous cattle, and 87% farmers used artificial insemination and rest used both artificial and natural services. Daily milk yield/cow/farm was 4.27 and 1.78 liters for a crossbred and indigenous dairy cow, respectively. It was estimated that the rearing cost of dairy cow was Tk. 67.5/cow/day and return from rearing dairy cow was Tk. 85.2/cow/day. The net return was Tk. 17.7/cow/day from crossbred in the study area and cost benefit ratio was 1: 1.26. The study showed that there were significant (P<0.01) differences within the dry period, service per conception, calving to first service, highest and lowest milk production and lactation period of crossbred and indigenous dairy cows. The study also showed non-significant differences within calving interval for crossbred and indigenous. Incase of small dairy farming, the farms were facing a lot of problems such as scarcity of feeds and fodder, high price of concentrate and lack of technical knowledge. Although the dairy cow owners face problems, the study observed that there were potentials particularly for the small dairy farmers. The small farmers by keeping 8-10 crossbred cows could earn a modest living by adopting small dairy farming as a profession