The objective of this paper is to discuss the potential and challenge of rural market development approach (MDA) for achieving improved food security in Bangladesh. Based on previous study (2008-2010) on rural public resource transfer programs to improve the food security status of households in Bangladesh, this paper explores how rural MDA could achieve better and sustainable results. Specifically, it examines how the approach could tackle systemic constraints faced by small-scale and marginal producers who depend on the market for selling their produce and labor, and buying services and other essential goods. It also touches the limitation of rural MDA which include market failure and exclusion of the poor, the risk of economic determinism and less focus on social aspects.