Slums providing housing to a good proportion of urban population in many developing countries have grown dramatically. Governments mostly assisted by the international agencies have improved environment, tenure security, income and resources in many of these. Yet that could not eradicate the problems as benefits could not be sustained due to lack in institutional development, policy implementation, governance, participation etc. Moreover, the urban poor’s capability to bring affordable and sustainable solutions, which can be improved with assistance, was overlooked. This paper discusses the changed approach to the issues of low-income groups housing in the above context, and examine the same in the context of Bangladesh. It also evaluates the achievements and sustainability of the Slum Improvement Program therein. Keywords: Capacity Building, Empowerment, Housing, Participation, Slums, Sustainability, Urban Poor.