The application of various Sukuk enhances infrastructural, financial, and economic development. Therefore, the usage and growth of Sukuk (A Shariah Compliant Islamic Bond) as a capital market instrument has shown impressive progress over the past few decades across Muslim as well as non-Muslim countries. Moreover, Sukuk based on profit sharing contract is much more beneficial than the interest-based bond, which dampens inequality, suppression, and speculation in the economy. However, the adoption of Sukuk depends much more on the country’s investor philosophy, infrastructural, and economic situation. Possibly, the capital market of Bangladesh with lack of Shariah-compliant instruments as well as majority investors from Islamic background is in severe need of Sukuk to overcome and satisfy the investment comfortability. Unfortunately, the system is not ready to accept such inception in terms of legal, regulatory, and human capital perspective. Therefore, this paper critically evaluates those challenges, prospects of Sukuk in Bangladesh and propose a Sukuk structure to be applied in Bangladesh considering its jurisdictions, investors, and economic circumstances.