Cotton is a major cash crop in the agriculture of Bangladesh, primarily fueling its substantial textile industry. Although local production is limited, cotton has the potential to bolster the country’s economic growth by supporting local economies and improving agricultural sustainability. An in-depth sustainability assessment of this integral crop is essential to ensure its long-term economic and environmental viability. This study aims to evaluate the sustainability of cotton production in Bangladesh and suggest strategic enhancements and policy measures to improve its environmental, economic, and social aspects. Data were collected from 60 farmers in two villages of Jashore district using a simple random sampling technique. A combination of descriptive, mathematical and statistical techniques was used to analyze the data. The findings highlighted a profitable benefit–cost ratio of 1.88 for cotton production. Positive impacts on cotton profitability were notably linked to the costs of labor, land preparation, and insecticides and pesticides. Despite this, 60% of farmers faced substantial challenges, including financial barriers, limited access to modern agricultural technologies, and a lack of training in sustainable practices. Economic constraints were a major barrier, although the environmental benefits of sustainable practices were widely acknowledged. To address these issues, the study recommends optimizing inputs like labor, land preparation, and pest management, and advocates for policy actions such as subsidies, tax incentives, and enhanced training programs to support the widespread adoption of sustainable practices across Bangladesh.