This paper describes the development process of modern irrigation technology in respect to water saving and management of water resources in Bangladesh. The cultivable land has declined about 35 percent while the population and demand of food has doubled since country’s independence in 1971. Growing demand of food entails intensifying land productivity and developing modern agriculture technology. Unfortunately, country is lagged behind compare to other developed countries regarding technological innovation and development. However, recent years an impressive success has made as overall agricultural productivity has increased and incipient diversification into value added products, such as fruits, vegetables, flower, pulses, spices, poultry, dairy and fish and almost bring self-sufficiency in food grain production. Rice is a staple food provides 96 percent of the country’s food requirement and employees about 60 per cent of labor force. Hence, most of the technological advancement has attained concerning to increase food grain (rice) production. Accordingly, country has achieved at marginal self-sufficiency on food grain production with the cost of indiscriminate use of natural resources particularly the water resources. Irrigation comes from two major sources - surface and ground water. Groundwater has covered 77 percent of total irrigated area and about 80 percent of groundwater has been utilized for crop production. More importantly, 75 percent of the total irrigation water has been used for paddy (rice) production. Most of the irrigation methods are traditional which caused of environmental degradation as well as extra cost of production. Groundwater abstraction has lowered water levels beyond the potential of natural recharge in urban and pre-urban areas. In addition, excessive groundwater abstraction for traditional irrigation (flooded irrigation) has posed a great challenge to the rural drinking water supply and tending arsenic contamination. However, few irrigation technological innovations have been taken place and disseminated in recent years with the collaboration of government, semi-government and non-government organizations (NGOs). These are automated canal and piped water delivery systems; set and automated sprinkle irrigation; Alternative Wet and Dry (AWD) method, pre-paid meter irrigation system, micro-irrigation including surface and sub-surface drip systems. The existing technological advancement is suitable for well-resourced farmers rather to small and medium cultivators. So, there is a call for upgrading irrigation technology in which can bring well-being to the majority of farmers. In addition, the policy makers and researchers should realize the importance of water resources and work together for ensuring judicious management of water resources.