This paper examines the impact of technological change and/or ‘Green Revolution’ on income distribution and poverty in Bangladesh agriculture. Results suggest that the major beneficiaries of this technological change are the land and resource owners. Among the income determinants, modern technology, soil fertility, farm size, number of working members, and farm capital significantly increase crop and agricultural income, while developed infrastructure significantly increases non-agricultural income. Production of modern varieties of rice and wheat alone contributes 29 percent to total existing income inequality and reaches as high as 35 percent in ‘high adopter’ villages, thereby, indicating its unexpected adversity on income distribution and is also accompanied by highest (63 percent) number of population below poverty line. Estimates of Gini-coefficient, Sen index, Kakwani index, and FGT distributionally sensitive measure, consistently revealed that incidence of poverty is lowest in ‘medium adopter’ villages implying that high level of modern technology diffusion alone may not be the key to agricultural development and economic growth. Rather, a diversified cropping system including balanced level of modern technology adoption, a distinguishing feature of the ‘medium adopter’ villages, yields higher income and enjoys least inequality and poverty. Therefore, an integrated policy of decentralised crop diversification incorporating balanced level of modern technology adoption, soil fertility management, and rural infrastructure development to promote economic diversification is suggested. KEY WORD: Technological change in agriculture, income distribution, poverty, Bangladesh.