Economically sustainable urban residential neighborhoods are characterized by adequate provision of physical infrastructure including transport facilities and utility services. The built urban fabric of residential areas of Dhaka has been undergoing densification operation over the past decades without considering the physical infrastructure capacity of these areas in terms of accessibility and provision of transportation and utility services. This intervention eventually exerted pressure on the existing infrastructure and caused negative externalities like traffic congestion, pollution, and water clogging. Thus, this paper aims to investigate the impact of densification on residential areas of Dhaka through the lens of economic sustainability. Seven residential areas from Old and New Dhaka that underwent various degreesof densification were selected as the study areas. Primary data was collected through a random sampling household questionnaire survey, fieldwork, and informal qualitative interviews with the residents and officials. Various published literature, newspaper articles, plans, and reports from government archives, Capital Development Authority (RAJUK), Dhaka South City Corporation (DSCC), and Dhaka North City Corporation (DNCC) provided the secondary data. The analysis is carried out in two parts. In the firstpart the impact of densification on accessibility to transportation facilities and utility services is analyzed in terms of availability of the services, distance to the bus stops, average travel time, modal choice, and residents’ satisfaction level. The second part explores the relationship between density and aspects of economic sustainability through Pearson’s correlation test. The findings revealed that public transportation is more accessible in lower-density areas than the higher-density residential areas owing to the road network pattern. A significant service delivery gap except for water supply was observed regarding the provision and quality of gas, electricity, sewerage, and garbage disposal services across all the study areas. Overall, density was found to have a negative association with the accessibility to physical infrastructures indicating that high-density residential areas of Dhaka do not have increased access to public transport and utility services which is contrary to the expected benefits of high-density living. A comprehensive density planning with an integrated sustainable transport plan needs to be formulated where viable public transport like Bus Rapid Transit (BRTs) systems and waterways may mitigate the situation from further worsening.