Existing solid waste management system of Habibganj municipality (pourashava) of Bangladesh was studied. A total of 234 households were surveyed. Solid waste generation rate was found to be 0.36 kg/cap/day. Household waste disposal was one of the main problems across the city. Among the different options of waste disposal, 21.4% and 23.9% respondents generally threw their wastes into nearby ponds and drains, respectively. About 14.5% of the sampled households discarded their wastes in their respective compound and only 12% households used bins supplied by the municipality. About 10.7% households disposed their garbage on the roadside. Lack of awareness, lack of dustbins, and improper maintenance of drainage system and lack of drainage facilities were the main reasons of the current inadequacy of the management system as reported by 183 (78%) respondents. The result indicate that for a 200 MT capacity composting plant, safe distance will be about 800 m from the disposal site in terms of odorous impact, while 500 m for health impact. In this study, a sustainable management system of solid waste disposal is suggested for the Habibganj municipal area.