Since Bangladesh is an agriculture dependent and over-populated country, so the over manpower should be made as resource through industrialization of the country. It is evident that the excess manpower lie mainly in agriculture sector and as small-scale industry sector is labor-intensive and small capital-requiring industry, so this paper has emphasized on the development of small-scale industry sector. This paper is explanatory in nature and data have been collected for conducting the study mainly from secondary sources. The main objective of the study is to find out the need-based appropriate extension service for small-scale industry sector. In order to present the appropriateness of extension services for the development of small-scale industry, the researcher has concentrated to find out the usual/major and even the trifling problems faced by the small-scale industrial units as well as small industrialists at first and then scrutinize the suitability of different types of extension services to remove the problems of this sector. Problems have been identified from two points of view i.e. from the view point of government and small industrialists’ associations as well as from the view point of industrial unit and owner of the industry. The problems for that are responsible the earlier one are the defects and loopholes in manufacturing process, suitability of machinery and technology, cooperation and coordination between government agencies and voluntary associations, financing, marketing, obtaining or providing information to the small industrialists. The problems for that responsible the industrial unit and owners of the industry are problems regarding organization of the concern/firm, marketing and staffing. The main problem lies in finding out the needs and providing appropriate extension services especially the consultancy, training and financing to small industrialists. Over and above, selection of genuine entrepreneurs, evaluation, implementation and ult