The European Union (EU) is by far Bangladesh’s largest export market, taking almost half of Bangladesh’s exports. More than 80 per cent of all Bangladesh’s exports that receive any tariff preferences is obtained from European markets. In addition, the EU has been one of the most important development partners as well as one of the major sources of foreign direct investment (FDI) in Bangladesh. However, Bangladesh still has huge export potential in the EU as it is estimated that currently only 60 per cent of export potential is utilized. But will this bilateral tie be remained same in the coming days and years? What challenges Bangladesh may encounter to keep this long partnership intact? In this paper, Mohammad A. Razzaque and Jillur Rahman analysed Bangladesh’s dependence on EU trade preference, EU’s recent policy shifts regarding environmental, social and governance compliance, current potentials and needs of EU’s cooperation while graduating from LDC, implications of other countries’ trade agreements with the EU and impact of the EU green deal in the Bangladesh’s industries. At the end the authors provided some specific way forward so that Bangladesh can move forward to a strengthened Bangladesh-EU cooperation.