Bangladesh's SMEs have long thrived under the privileges of being a Least Developed Country (LDC), benefiting from special trade advantages that have boosted exports and local growth. However, with LDC graduation looming in 2026, these advantages will fade, presenting significant challenges for SMEs. As the country transitions, the competitive edge enjoyed by export-oriented and import-substituting SMEs will diminish, raising concerns about their ability to remain competitive in both local and global markets. This study explores the impacts of LDC graduation on Bangladesh's SMEs, analyzing potential obstacles, opportunities, and necessary policy shifts to secure their future in an increasingly competitive global economy.