This article provides a comprehensive exploration of Citizen Identity Management in Bangladesh, concentrating on grassroots dynamics through the lens of a piloting project. In the context of Bangladesh's ambitious initiatives, such as the Smart National Identification Card programme and the National Identity Registration Act 2023, the paper critically assesses the challenges and opportunities inherent in these efforts. With an increasing shift toward digitalization, the article underscores the importance of secure and privacy-conscious management of citizen information. Drawing lessons from the piloting project, the study aims to contribute nuanced insights into Citizen Identity Management, offering valuable perspectives for policymakers and practitioners in the realms of digital governance and identity systems. Focusing on the grassroots level, particularly within the Union Parishad framework, the article navigates through the complexities of implementing national identity strategies. This article contributes significantly to the discourse on citizen identity management in decentralized governance in Bangladesh. It advocates for a holistic and integrated approach, emphasizing the strategic use of existing databases, the adoption of Information and Communication Technologies (ICTs), and active citizen engagement.