The article examines how Islamic banks in Bangladesh manage liquidity compared to conventional banks. They use various ratios and measures to analyze the liquidity position and trends over time. Islamic banks show a slight decrease in liquidity and deployment ratios, with a negative short-term liquidity gap that is improving. Profit sharing investment accounts are growing and make up a significant portion of deposits. Islamic banks generally have higher liquidity and deployment ratios than conventional banks. Both types of banks have maintained adequate ratios as required by Basel III regulations in recent years.