For any foreign investor, protection of their investment is a primary concern in host states. National legislations and BITs usually provide legal security to them so that they can exercise their desired economic freedom in host countries. Without legal safeguards for their investments, they will not be motivated to invest their capital further. Like other host states, generally, the national laws and BITs of Bangladesh provide significant investment protection guarantees. This paper will discuss how far the protection through judicial or arbitral settlement is established in the legal framework and BITs of Bangladesh. Dispute settlement mechanisms in Bangladesh, various ICSID cases involving Bangladesh, and conflicts between Bangladesh and foreign investors are discussed. The paper also covers the issues and challenges of judicial arrangements in Bangladesh, and findings show that dispute settlement arrangements in Bangladesh are not up to international standards and require significant development. Last, recommendations are provided for consideration.