Shrimp farming in Bangladesh has been expanded rapidly following huge demand in the international market. This fast development is however accompanied by lack of adequate planning and regulation at the national policy level. This unplanned and haphazard shrimp farming is gathering considerable debate due to its negative environmental and socio-economic consequences. This paper first investigates the nature of adverse impacts of unregulated shrimp farming in the coastal region of the country. In that respect, the article makes a thorough evaluation of existing regulatory and institutional framework regarding shrimp farming in Bangladesh. Ultimately, the paper argues that a paradigm shift is required from the present sectoral approach of resource management. Finally, it recommends to pursue a holistic approach together with integration of Integrated Coastal Zone Management (ICZM) principles into national laws and policies for sustainable shrimp farming in Bangladesh.