Little attempt has been made to empirically investigate the effects of childhood poverty on children’s educational attainments and their everyday life in Bangladesh. Quality education is a prominent aspiration in the Millennium Development Goals (MDGs), but there are few studies of school improvement in relation to the educational achievement of disadvantaged children living in rural Bangladesh. This article offers a theoretical understanding of childhood poverty and educational exclusion, building on the empirical research carried out in two rural areas to explore the following questions: Why do so many socio-economically disadvantaged children tend to dropout from formal secondary school? and Why do some succeed? After exploring the challenges of childhood poverty and educational exclusion, it shows how the challenges could be mitigated through attention to the ecology of human development in the contexts of individual children. Complex ways in which efforts can be made to tackle the challenges of childhood poverty are influenced by ecological factors within the context of the study. Recommendations for policy and practice are offered based on the findings to improve formal secondary schooling for socio-economically disadvantaged children in Bangladesh.