For the first time in Bangladesh, a bench scale membrane bioreactor (MBR) unit was tested in treating a textile wastewater in the industry premises of EOS Textile Mills LTD, Dhaka for three months. The performance of the unit was compared with that of the conventional activated sludge treatment plant, which is in operation in the same premises. The COD and BOD removal efficiency of the MBR unit reached to around 90% and 80% respectively in 20 days whereas the removal efficiency of the conventional treatment plant was as low as 40-50% and 38-40% respectively. The outlet COD and the BOD level for the MBR unit remained stable in spite of the fluctuation in the feed value, while the conventional effluent treatment plant (ETP) failed to keep any stabilized level. The performance of the MBR unit was much superior to that of the functional ETP and the water treated by the MBR system can meet disposal standard.