In the context of development of capital market in Bangladesh, Dhaka Stock Exchange (DSE), occupies a very important and significant place. Some scholars earlier did some limited works relating to the capital market development in Bangladesh. But no in-depth study was earlier done on capital market development in Bangladesh. The present study, therefore, aims at evaluating the overall performance of capital market development in Bangladesh with special reference to DSE. For this purpose required data were collected from secondary and primary (where necessary) sources. In a developing economy like Bangladesh, stock exchange has a vital role to play in the economic growth and development of the country through which capital market development can be ensured. It is not so easy task to evaluate the performance of DSE and its role in the development of capital market. However, attempts have been made to analyze the activities of DSE and to see to what extent its objectives were achieved. This work also examines and analyzes the historical profile including objectives and function of DSE with a view to see to what extent its basic operations are successful.