The Government of Bangladesh has taken several initiatives to conserve fish, including the national fish hilsa shad (Tenualosa ilisha), and enhance community development. This chapter assesses the role and contributions of compensation schemes that support fisheries conservation and livelihood sustainability. Under this scheme, the government established six fish sanctuaries and enforced several different fishing ban seasons. Simultaneously, the government adopted an alternative income generation and compensation scheme for lost income during fishing bans. These bans include hilsa fishing ban and juvenile (jatka) fishing ban in the sanctuaries, marine fishing ban in the Bay of Bengal, and a freshwater fishing ban in the Kaptai lake. Although these bans appear to be effective in achieving ecological outcomes, they have led to adverse impacts on livelihoods, including loss of income, long-term indebtedness, and less nutritional intake. This study recommends an improved compensation scheme and logistical support, a participatory management plan, and a strengthened legal framework towards sustainable fisheries resource management and livelihood development within fishing communities in Bangladesh.