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The home based industry (HBI) is a common feature in slum areas of Dhaka City. Many people especially the women are involved in this sector. The study has explored the characteristics, problems, issues associated to the HBI of slums. The study also explored the working situation, environment, and income, of the slum people. It also explains various issues related with the market situation, the raw materials and finished products.Three categories of people who are involved in the HBI activities; they are worker, service provider and service provider cum worker. About 63%of family income of worker family comes from HBI activities, 89.47% for service provider cum worker and 71.78 % for service provider. About 52% of the people involved in the HBI activities are women. The study also identifies that the HBI activities suffers from various problems like lack of working place,lack of working capital, lack of credit and training facilities, police harassment, role played by middleman inthe HBI activities and lack of legislative support in the favor of HBI promotion. At the end, set of policy has been recommended to promote the HBI considering all the aspects associated the HBI sector