The study attempts at exploring the feasibility of rural cottage industrialization as a potential for augmenting income in rural areas and absorbing the vast unemployed labour force in Bangladesh for some economic contribution. The Yanmar Village Home Industry (VHI) drew our attention as a large scale and modern industry that relates to cottage industry, and where the system works while allowing the villagers to keep to their traditional employments of farming and fishing. Our investigation leads to the conclusion that such venture in cottage industry is possible with proper guidance and simplification of jobs to suit the rural populace who are not trained in modern technology. But this type of industry is time limited. At a stage of economy when the country is developing, wages are low and there is demand for labour intensive industries to absorb surplus labour, such cottage industry manufacture is welcomed and works economically. But for adaptation in Bangladesh, unlike Japan, planning with a modified model togather with active governmental involvement and guidance may become necessary.