Food security is an important factor contributing to the socio-economic stabilization and development of Bangladesh. Though, the country has made a steady progress in the expansion of food production, but food insecurity is still a major problem mainly because of poverty. Various development strategies aimed at eliminating poverty are now combining the microcredit as one of the key sectors in their programs. Empirical studies provide convincing evidence that microcredit has had positive impacts on three important sectors of national development - the alleviation of poverty, the empowerment of women and the food security. This thesis scrutinizes the effectiveness and the capability of microcredit in enhancing women’s livelihood and empowerment in rural areas of Bangladesh. By using Sen’s Capability Approach and empirical data, this thesis represents the interaction of women’s livelihood and microcredit. Collecting data from qualitative sources, this thesis tries to evaluate if the poverty alleviation capacity of microcredit helps its participant to improve food security. The findings show that microcredit can enhance women’s capabilities in achieving food security by offering them diverse economic and social solution of their vulnerability. This thesis concludes that although microcredit is certainly not a magic formula for poverty alleviation, however, it can prove itself a beneficial tool in the fight against poverty and food insecurity.