This study aims at examining the different issues regarding the problems and prospects of higher education in Bangladesh. The study has attempted to identify the factors that act as a barrier to achieving the ultimate goal of higher education. The review of literature reveals that the sustainable development and prosperity of societies in this dynamic age largely depend on the quality of higher education, but unfortunately the higher education system of Bangladesh has long been suffering from interrelated and complex problems. The major problems identified by the respondents (teachers, students and researchers) are: lack of reward and motivation, conflict and politicization, corruption, resource constraints, inefficient management and policies, unethical activities, inadequate research, inappropriate curricula and lack of accountability. Finally, some recommendations have been made in order to improve the quality of higher education in Bangladesh.