The major intendment of this study is to investigate the relation between money supply and inflation in Bangladesh using monthly data spanning from 2010.05 to 2017.12. By utilizing the cointegration and Vector Error Correction Modeling (VECM) techniques this study demonstrate that money supply does not affect the inflation in short-run and this is not true in vice-versa. In the long run, this study depicts a bi-directional causal relationship of money supply to inflation. Thus for short-run inflation in Bangladesh is not a financial incident somewhat it can boost the growth of the money supply but in the long-run inflation can significantly be influenced by the money supply. This study recommends that the monetary authority of Bangladesh can pursue the monetary policy considering the long run effect of the money supply. Contribution/ Originality: This study contributes in the existing literature which has been able to verify that money supply is not a significant element that triggers up the price level in Bangladesh economy in the short-run, and this study also documents that in the long-run the effect of money supply is not neutral.