Abstract: Sub-contracting refers to the arrangement by which small firms enter into contractual relationship with large firms to supply parts, components, spares and sub-assemblies as per specifications. It offers an opportunity to small industries to survive and thrive under the patronization of large industries. BSCIC initially took up the sub-contracting programme in 1982. But actual operation of the programme started from 1986-87. Five Year Plans and Industrial Policies of GOB gave emphasis on the promotion of sub-contracting. In 1989, the GOB promulgated a notification on sub-contracting. The constraints to the development of sub-contracting in Bangladesh are inadequate policy and its implementation, globalization and open market policy, power failure, outdated technology, smuggling and inadequate resource personnel. The suggestions put forward by the sample respondents for the development of sub-contracting are revision of policy, imposition of restriction on the imports, establishment of new power plant, development of technology, steps for stopping smuggling, employment of adequate resource personnel, etc.