Many cities in the North are adopting an inclusionary housing policy in response to housing affordability and social inclusion, which is implemented in very few cities in the South. There is a research gap to determine the potential of this planning instrument in the fast-growing cities in developing countries. This research reviews the possibility of implementing inclusionary housing policies there. This is case study research, which has selected Dhaka, the capital city of Bangladesh, as a case study city. Data have been collected from both primary sources (site surveys and in-depth semi-structured interviews) and secondary sources. A qualitative thematic analysis has been performed. This research revealed that implementing an inclusionary housing policy in Dhaka is currently challenging due to the lack of legal, financial, and organizational capacity. However, this policy can be enabled through the revision of housing policy, the legal and institutional frameworks, financial mechanisms, the knowledge base, and finally through political will.