Bangladesh has witnessed an incredible decline in fertility from the mid-1970s to early 1990s. Since then the total fertility rate (TFR) has been halted abruptly in a stagnant point, which is now a major concern to the government, researchers and the policy makers. This static situation in TFR raises questions about the factors responsible for fertility transition. This paper critically examines fertility levels, trends and the role of proximate determinants of fertility transition in Bangladesh. In analyzing the major proximate determinants we applied Bongaarts model to data obtained from four nationwide demographic surveys. The contribution of each of the major proximate variables has been examined through the decomposition of TFR for the period 1989-2000 at four points by time. Our analyses clearly indicate that contraceptive practice is playing the key role in fertility decline in Bangladesh. The findings of the study provide a basis for drawing out some policy adoption and prescribe some recommendations for further decrease in TFR of Bangladesh