Bangladesh pursues a moderate foreign policy that places heavy reliance on multinational diplomacy, especially at the United Nations. In 1974 Bangladesh joined both the Commonwealth of Nations and the United Nations and has since been elected to serve two terms on the Security Council in 1978-1979 and 2000–2001. In the 1980s, Bangladesh played a lead role in founding the South Asian Association for Regional Cooperation (SAARC) in order to expand relations with other South Asian states. Since the founding of SAARC 1985, a Bangladeshi has held the post of Secretary General on two occasions.

Bangladesh's most important and complex foreign relationships are with India and Pakistan. These relationships are informed by historical and cultural ties and form an important part of the domestic political discourse.

Bangladesh's relationship with India began on a positive note because of India's assistance in the independence war and reconstruction. Throughout the years, relations between both countries have fluctuated for a number of reasons. Bangladesh claims that India feels too comfortable in playing the role of "Big Brother" to smaller, weaker nations.[citation needed] India has voiced concerns about anti-Indian separatists and Islamic militants allegedly being harboured across their 2,500-mile (4,000 km) border, as well as the flow of illegal migrants, and is building a fence along most of it.[29] But at the 2007 SAARC meeting both nations pledged to work cooperatively on security, economic and border issues.[30]

The current strength of the army is around 200,000, the air force 7,000, and navy 14,950.[31] In addition to traditional defense roles, the military has been called on to provide support to civil authorities for disaster relief and internal security during periods of political unrest. Bangladesh is not currently active in any ongoing war, but it did contribute 2,300 troops to the coalition that fought in the 1991 Gulf War and Bangladesh is consistently a top contributor to UN peacekeeping forces around the world. As of May 2007, Bangladesh had major deployments in Democratic Republic of Congo, Liberia, Sudan, Timor-Leste and Cote d'Ivoire.[32]

Bangladesh enjoys relatively warm ties with the People's Republic of China which has, particularly in the past decade, increased economic cooperation with the South Asian nation. Between 2006-07, trade between the two nations rose by 28.5% and there have been agreements to grant various Bangladeshi commodities tariff-free access to the Chinese market. Military cooperation between the Military of Bangladesh and the People's Liberation Army is also increasing, with joint military agreements signed and Bangladesh procuring Chinese arms which range from small arms to large naval surface combatants such as the Chinese Jiangwei Class Missile Frigate.