The coastal areas of Bangladesh, particularly the southeast region, is notorious for producing a majority of dried fish products in the country by recruiting numerous dry fishers and wholesalers (locally called Mohajon). This study examines the socio-economic condition and livelihood status of small scale dry fish producing communities in Nazirartek, a renowned fish drying village situated in Cox’s Bazar, Bangladesh. It was perceived that the dry fishers lived in a very underdeveloped state with low income and literacy rates, poor living standards and malnourished condition, whereas the livelihood of wholesalers was comparatively better. The inadequate compensation during rainy seasons was another reason for the unimproved livelihood of the fishers. Because of this, they had to take up substitute agricultural or other occupations during the off-seasons of fish drying activities. Majority (60%) of the wholesalers had attended secondary school, considering 56.66% fishers went up to primary school with no further secondary school education. Furthermore, over 50% fishers had an annual income of 81,000 to 100,000 BDT while 70% wholesalers earned above 100,000 BDT year-1. Primarily, the major constraints encountered by the communities are vulnerability to extreme weather, reliance on loans due to low wages, inadequate off-season income opportunities, lack of good treatment facilities, no prior training and scarcity of technological facilities. With appropriate management strategies, comprehensive marketing systems, national co-operation and employment opportunities, the dry fishing industries of Bangladesh can be developed to its’ full potential.