An ethno-conflict erupted in the Chittagong Hill Tracts (CHT) of Bangladesh in 1975 which lasted for more than two decades. It came to a formal end when the Bangladesh government and the ethno-guerilla group reached a negotiated settlement in 1997. Since then, a peace process has been underway, but violence still persists. This article illustrates why ethno-conflict erupted in the CHT and why violence still continues. It argues that Bangladesh since its inception has been an ethnocratic state and the ethnocratic statecraft has led to the rise of ethno-conflict and contributed to the persistence of violence in the post-accord CHT.