This study aims to review the literature about air pollution, both outdoor and household, and its health consequences in Bangladesh. We searched articles in March 2021 using the PubMed/Scopus database. Peer-reviewed published documents with analytical data and results were retrieved. We also reviewed studies related to ambient and household air quality, the sources of air pollution, the health and economic implications, and the role of NGOs and Govt. of Bangladesh. The sources of ambient air pollution in Bangladesh include Anthropogenic origins like the burning of fossil fuel, coal, wood, open burning of waste or agricultural residues, emission from motor vehicles and industries, use of biomass fuel for cooking, and transboundary air pollution; and Natural sources like windblown dust, sea spray, forest fires, and methane gas emitted by animals. Brick kilns, surface dust, and vehicle emissions contribute about 85.0% of local air pollution in Dhaka, the largest urban area. The contribution from transportation is aggravated by traffic congestion, contaminated fuels, including leaded fuels, two-stroke auto-rickshaws, overloading, and the dust generated due to friction with the roadways. Industries inside cities and brick kilns surrounding the town are also significant contributors. In recent years, the air pollution of Dhaka city has worsened, causing adverse health effects and environmental degradation. The government response has included eliminating the leaded fuel, initiating the use of Compressed Natural Gas (CNG), and phasing out the two-stroke auto-rickshaw, replacing them with CNG driven auto rickshaw. It also implemented and updated regulations, formulated policies and strategic plans.