This study investigated the core challenges of road transportation in Bangladesh and more specifically in Dhaka city. Among the challenges, traffic jam cause unbearable damage in terms of economic, social, environmental impact and daily life problems. The primary data for the study was collected from the websites of various ministries of Bangladesh and other relevant data sources, for example, the road and transportation website. Secondary data was collected from books, journal articles, the daily newspapers of Bangladesh and other online sources. This study had a qualitative research approach. The primary data was analyzed by comparing it with that obtained from other developing countries with the same kinds of problems. The results suggest that the main causes of road transportation problems and traffic jams are mismanagement, poor infrastructure, ignorance, negligence to follow the traffic rules, limited use of advanced technologies and limited resources. In order to minimize the traffic conditions within its limited resources, the country needs to initiate a number of alternative solutions, for example, traffic demand control, widening the roads, providing more public buses and using the Intelligent Transportation System (ITS) along with an efficient management system.