Bangladesh is characterized by a high demand for skilled workers. Hence, the significance of Technical and Vocational Education and Training (TVET) becomes crucial to address the existing skill gaps to stimulate economic development. This research addresses the major challenges that hinder the progress of TVET in Bangladesh. This study adopts a mixed-method approach to investigate thoroughly the fundamental aspects of TVET's capacity to provide high-quality skills development programs with an aim to increase its graduates' employability. This study finds that individuals, upon their graduation from TVET institutions, face significant obstacles in the job market. These challenges, as the research finds, arise primarily due to discrepancies between graduates' skills and job market demands. This study also examines the local TVET issues in Bangladesh, offers valuable insights and policy recommendations to address skill deficits, ensure sustainable employment for TVET graduates, and enhance economic development in developing nations..