The effectiveness of aid is a matter of much controversy. In response, the aid effectiveness agenda, developed through numerous conferences and declarations since the 2000s, has been promoted as a potential solution to problems identified with previous aid regimes. This investigation aims to analyse the aid effectiveness agenda in Bangladesh, a leading aid recipient country. Particular emphasis has been given to the development of aid policies, how they have been implemented and the contributions they have made to aid effectiveness. The study applies the top-down public policy implementation approach to develop the conceptual framework. This research adopts qualitative methodology and case study strategy. It opts thematic analysis technique to analyse sixty six in-depth interviews and numerous policy documents, many of which have not been accessed by previous studies. Key findings include: both Government and donors have not shown sufficient commitment to implement the agenda; more focus has been given to initiatives with a high visibility at international events than to outcomes; most initiatives are project-based and have not been institutionalised; there is insufficient understanding (or even awareness) of the aid effectiveness agenda among Government officials; donors are reluctant to change their systems and procedures; top-down policy implementation approach of both Government and the donors has remained relatively unsuccessful. The study shows the shift from aid to development effectiveness agenda has negatively impacted country level activities and the implementation of the agenda is currently in limbo. The reasons for this are complex, including problems with donors, recipients and with the agenda. Problems with donors include political agendas and interests, preference of own policies and procedures and a lack of respect for recipient leadership. Issues with recipients include poor leadership, weak policy implementation and a fear of losing funding. Problems identified with the agenda are the legally non-binding nature and the shift from aid to development effectiveness.