Housing provisions can not be isolated from other aspects of urban life, and both its production and usability are closely related with critical financial problem and the eventual difficulties faced by the urban poor. Bangladesh has among the highest urbanization rates in the world. A great majority of the urban population lives in slums and manages to build and maintain their habitats without direct or with very limited support from the formal and public sectors, often in the face of tenure insecurity and threat of rampant evictions. It is the common scenario of slums in Dhaka is, in a small area so many people are living in an unhygienic place and in a poor housing condition. Slum up-gradation is better than the slum eviction. Slum rehabilitation provides the urban poor a better and affordable living and also security of tenure. This study is an attempt to identify the existing condition of the urban poor as well as the slum dwellers and to identify the rehabilitation potential of these poor slum people. Along with this, an attempt has been made to provide a plan for rehabilitation and some guidelines are suggested to improve the housing condition of the slum dwellers.