This article looks at the role of NGOs in terms of their capacity for social capital development and community empowerment. The article is based on qualitative research focusing on two NGOs in Bangladesh: Proshika and Practical Action Bangladesh, and their work in two communities, one urban and the other rural. The article also focuses on data obtained from two indigenous occupations: blacksmiths and goldsmiths. It argues that there are specific problems within these communities and that NGOs’ capacities for social capital development and community empowerment were limited.