The Bangladesh Forest Research Institute was set up as a Forest Products Research Laboratory (FRL) in 1955 by the Government of the then Pakistan. In 1965, this Laboratory was Provincialized and named as the East Pakistan Forest Research Laboratory (EPFRL) under the Ministry of Agriculture to conduct research on the management of the Forest Department. The major objective of the FRL was to conduct research on the utilization of wood and wood products. Later, the need for forestry management research was felt by the administrators and Planners of the country due to rapid decline in stock density in forest land. Consequently, in 1968, the Forest Management Research Branch was created with the assistance of FAO/UNDP, and after the independence of Bangladesh the FRL was reorganized as BFRI. In 1985, the BFRI was separated from the Forest Department, and its administrative control went under the Ministry of Agriculture (MOA) and then in 1988 under the Ministry of Environment and Forest (MOEF).

BFRI has two research Branches, namely, the Forest Products Branch and the Forest Management Branch each of which is headed by a Chief Research Officer. The Forest Products Branch has six research divisions and the Forest Management Branch has eleven research divisions. In addition, there are two other common services divisions directly under the Director. Research on scientific and efficient utilization of forest produces are the responsibilities of the Forest Products Branch. Major contributions of this Branch are designing of a low–cost solar-kiln for seasoning timbers, devising of preservative treatment techniques for rural housing materials, generation of technology for good quality pulp from inferior jute, classification of end-uses of the lesser-used and village wood species, etc.

Research in the Management Branch is aimed at increasing the productivity of forest land through improved management, conservation of soil and water, protection of trees from pests and diseases, tree improvement, etc. Mentionable achievements of the Forest Management Branch are site-specific tree species selection, propagation of bamboos from branch cuttings, development of nursery techniques for tree culture, etc. BFRI has pioneering contribution on artificial regenertion of mangrove species and raising of man-made mangrove plantations which at present cover about 0.1 million hectare land along the coastal belt of Bangladesh.