Unusually as a least developed country (LDC), Bangladesh has a strong pharmaceutical industry. The country successfully developed its pharmaceutical industry due to two national drug policies (NDPs), NDP 1982 and NDP 2005, and the intellectual property waiver offered by TRIPS for LDCs. This study first analyzed the roles of the NDPs and TRIPS in the Bangladeshi pharmaceutical industry and then examined the prospects and challenges of the Bangladeshi pharmaceutical industry after graduation from LDC status.