Water plays a crucial role in achieving the Sustainable Development Goals (SDGs), particularly SDG 6, which focuses on Clean Water and Sanitation. This goal influences various areas such as health, food security, gender equality, climate resilience, and ecosystems. In Bangladesh, the challenges posed by climate change, rapid urbanization, industrial growth, and agricultural needs have made water governance a double-edged sword offering both a chance for development and a significant risk. This review brings together evidence on ecological pressures like salinity intrusion, groundwater depletion, and ecosystem degradation, as well as the socioeconomic inequalities in access, affordability, and health. It also points out the fragmented institutional landscape that hampers effective coordination among different ministries and policies. While Bangladesh has made strides in improving access to water and sanitation, national statistics often mask local issues such as contamination, seasonal shortages, and the heavier burdens faced by women and marginalized communities. The analysis emphasizes that global SDG metrics fall short in capturing these intricate realities, highlighting the need for participatory, context-aware, and detailed indicators. On a positive note, there are opportunities for improvement through digital monitoring, community involvement, nature-based solutions, and cleaner industrial practices, particularly in the ready-made garment sector. Ultimately, we argue that water should be viewed as a key lever for integrating the SDGs: without coordinated governance and strategies focused on equity, progress may become fragmented. However, with adaptive and inclusive policies, Bangladesh has the potential to turn its vulnerabilities into avenues for resilience and sustainability.