The study investigate the impact of socioeconomic factors on malnutrition in children (under 5 years) using Bangladesh Demographic and Health Survey. The urban and rural areas are separately probed for stunting, wasting and under-weight children. The analysis revealed that birth-interval, mother’s education and wealth index reduce the malnutrition in children for urban and rural household, while duration of breastfeeding and lower BMI of the mother increase the malnutrition in both urban and rural areas. Wealth index is more effective in rural areas as compared to urban ones. The male children are more likely to be malnourished in urban areas but female children are more likely to be malnourished in rural areas. The primary level of education of the women has no significant impact on nutritional status of children in urban as well as in rural areas. It has important policy implications that at least secondary level of education should be part of the education policy of Bangladesh. The incidence of diarrhea enhances the probability of stunting and wasting in both urban and rural areas of Bangladesh. From the policy perspective mother’s education and birth-interval are required for achieving the nutrition status of children. For the long-run the socioeconomic status of the household expressed by wealth index is needed. The duration of breastfeeding needs to be reduced by initiation of the supplement food.