This paper analyses the impacts of agricultural trade liberalisation on economic growth through technological transformation as well as on the welfare of rural households in Bangladesh. Using secondary data, it considers the background and reasons for policy shift of Bangladesh economy from agricultural protection to trade liberalisation. It attempts to shed light on technological transformation rice production and distributional consequences resulting from agricultural trade liberalisation. It was found that large and medium farmers gained from productivity improvement but lost from decrease in producer price. The net buyers gained more than net sellers because both consumer and producer prices declined in the post liberalisation era. Therefore, the poor gained more than the rich indicating the growth was pro-poor. The study suggests that agricultural trade policy reforms positively impacted productivity growth and benefited the majority of the population who are involved with agriculture and are predominantly rural poor and functionally landless.