The street vending sector plays a crucial role in the economy of Dhaka, providing employment and affordable goods to a large population. However, street vendors in Dhaka face numerous socio-economic challenges, including low income, long working hours, and limited access to basic services. These challenges are primarily caused by harassment by local authorities, health and safety risks, and limited legal protection. This empirical investigation aims to provide a comprehensive analysis of the socio-economic conditions of street vendors in Dhaka and identify sustainable alternatives for their occupation. The investigation used a mixed-methods approach, including surveys, interviews, and focus group discussions, to collect data from street vendors, local authorities, and other stakeholders. The study also reviewed existing literature on street vending and related policies in Dhaka and other similar contexts. The investigation found that street vendors in Dhaka earn a meagre income, work long hours, and lack access to basic services such as water, sanitation, and healthcare. Furthermore, street vendors face numerous challenges, including harassment by local authorities, health and safety risks, and limited legal protection. These challenges have been exacerbated by the COVID-19 pandemic, which has led to a decline in sales and income for many street vendors. The investigation also identified sustainable alternatives for street vending in Dhaka, such as the establishment of designated vending zones, providing basic services to vendors, and promoting formalization and organization of the street vending sector. These alternatives can provide better working and living conditions for the vendors and promote a more organized and formal sector. Finally, the investigation provided policy recommendations to local authorities, government agencies, and other stakeholders to improve the socio-economic conditions of street vendors in Dhaka and promote a sustainable street vending sector. These recommendations include the establishment of a formal legal framework for street vending, providing access to basic services, and creating designated vending zones. The implementation of these policy recommendations can have a positive impact on the livelihoods of street vendors and the economy of Dhaka.