The paper examines the potentiality of vertically integrated poultry contract farming system in Bangladesh on farm income through profitability and farm productivity. Although government provides various favourable policies for poultry sector development but till now meat deficiency is 89.5 per cent of the total requirement. This is largely because of lack of necessary backward and forward market linkages. Vertically integrated contract farming could be one possible solution in this case. With effective management, vertically integrated contract farming system can be a means to develop markets and to bring about the transfer of technical know-how and to generate farm income in a way that contributes to farm profitability and productivity. Primary data were collected from 50 sample farmers of ABFL (Aftab Bahumukhi Farms Limited), the pioneer of vertically integrated farm which is situated at Kishorganj district of Bangladesh. Twenty five (25) independent sample farms were also selected from Gazipur district, the poultry region of Bangladesh. Results indicate that the use of production contracts is associated with a substantial increase in profitability, factor productivity, and represents a technological improvement over independent farm production, which would help to alleviate poverty.