Bangladesh is a developing country where contribution of agriculture in national GDP (Gross Domestic Product) is 12.68%. In agricultural sector, about 79% irrigation has been provided by groundwater. The extensive installation of deep tubewells (34,332) and shallow tubewells (1,483,332), in last two decades, helps in maximum utilization of groundwater which is leading Bangladesh to reach near to the self-sufficiency in rice production (35.3 metric tons in 2019). But the continuous production of boro rice in the dry season is a threat for groundwater use efficiency. Again, without sufficient irrigation water, assuring sustainable agriculture is not feasible. This review paper had been prepared on the developing scenario of groundwater and its utilization efficiency, problems in groundwater use and relevant remedies to attain sustainable agriculture in Bangladesh. Due to the over extraction of groundwater, the depth of groundwater table has been declined (15%) miserably. Using redundant amount of irrigation water, conveyance loss (8-40%), arsenic contamination, insufficient recharge of groundwater etc. are the major problems behind inadequate groundwater use efficiency. Using Alternate Wetting and Drying (AWD) method, reducing conveyance loss, diversifying cropping pattern, reforming national policies etc. are some effective measures to increase groundwater use efficiency required for sustainable agriculture. About 10,000 tk/ha can be saved just by minimizing the cost required to extract excess groundwater for irrigation. In Bangladesh, maximum national policies are focusing exclusively to the resource development rather than the resource management. The awareness can be built through different teaching programs among all the stakeholders. Rather than just imposing restriction on installation of tubewells, more constructive policies have to be announced by the policy makers. Seven different agencies are now working for the management of groundwater in Bangladesh. Besides other technical solutions, there should be a connection between different organizations related to the groundwater management for the effective implementation of their target policies.