In the recent year poverty alleviation has become one of the burning issues worldwide. A systematic development of a nation mainly depends on the proper alleviation of poverty. For this reason poverty alleviation have become global challenges, especially in the developing country like Bangladesh. The micro credit program is playing a vital role in the poverty alleviation. In parallel of government of a country, many NGOs and economical institutions have initiated different activities on the basis of Microcredit programs to alleviate the poverty. Therefore, the objective of this study is to show how micro credit works to improve the quality of poor targeted groups and reduce poverty and how it affects the living standard of the poor people in the study area. Several micro credit institutions are working in the study area. Grameen Bank, BRAC, ASA, are some of the most prominent of them. These institutions are working tremendously for the empowerment, poverty reduction and improvement of living standards for the poor people in the study area. However, the objective of this paper is to analyzethe potential contribution of NGOs and the role of micro credit more generally, to economic development, poverty alleviation and constraints inhibiting their future development in Bangladesh.