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Statelessness not only triggers crises within the boundaries of a state, but these crises often spread along borders. The Rohingya refugee crisis, resulting from systematic state atrocities towards a stateless community, has resulted in a massive wave of forced migration to neighbouring Bangladesh. Subsequently, the large number of refugees is exerting enormous pressure on the economy of this developing nation. The crisis can be understood from the perspectives of both human concerns and Bangladesh’s traditional security concerns. Furthermore, the COVID-19 pandemic is bringing additional challenges. This study investigates and examines the nature of the dilemma faced by the Bangladesh government in its foreign policy strategy over the Rohingya refugee crisis. It is argued that Bangladesh is facing dual challenges from the national and human security perspectives, and that the regional interests of major players, such as India, China, Russia and Japan, are determining the country’s policy stance. It is also argued that the plight of the Rohingya people through their statelessness has become less decisive in the major powers’ diplomatic calculations. The findings suggest that Bangladesh should accentuate its efforts to internationalise the issue and engage in a vigilant balancing between the major players for the repatriation of refugees, while, at the same time, exerting bilateral pressure on Myanmar.

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