Education renders people with certain capabilities that prepare them to contribute to the social and economic development of the nation. Such capabilities turn them into human capital which, according to development economists, raises productivity when increased. Following an exhaustive review of literature on education research, this paper, however, aims at exploring the effectiveness of Bangladesh's present education system in delivering quality education as well as reckoning the prospect of establishing a knowledge-based society in the nation. This paper, being qualitative in nature, reveals that the nation has achieved an exemplary success in primary education as regards increased enrolment rate, while the enrolment rate is not satisfactory in secondary schooling and the tertiary education is expanding. However, the quality of education imparted at all the primary, secondary and tertiary levels is not up to the mark to create a strong human capital and reckon the prospect of knowledge-based society in the country. A number of reform measures are required to be undertaken in order to ensure quality education and create an effective knowledge base in the nation.