Abstract: The present study examines the consumption pattern of milk and milk products among different income groups in some selected areas in Bangladesh. Family budget data were collected through household survey during September` 01 to May 2002 for 179 selected households from the three different areas of Bangladesh, comprising 44 from Rural, 61 from Municipality town and 74 from Metropolitan city households formed the basis. The sample households were post classified into 5 income groups based on monthly household income as follows: (I) < Tk. 3000; (II) Tk. 3001-6000; (III) Tk. 6001-9000; (IV) Tk. 9001-12000 and (V) >Tk. 12000. Among milk and milk products, the major allocation of expenditure was devoted to liquid milk followed by sweetmeats and powder milk and `other milk products`. The municipality town households consume more milk, sweetmeats and dahi than Rural and Metropolitan city. On the other hand, Metropolitan households consume more powder milk, condensed milk, ghee and ice cream. Milk and some milk products consumption and expenditure on it increased substantially, with the increase of income in all the areas.