The leadership of Muhammad Yunus began on 8 August 2024 when he was sworn in as the Chief Adviser of Bangladesh by President Mohammed Shahabuddin. In August 2024, after the resignation of Sheikh Hasina as prime minister and her departure to India following the Student–People's uprising, the key coordinators of the uprising announced that Yunus would be Chief Adviser of the interim government. The main pledge of the interim government is to forge consensus about and implement fundamental reforms that are required to hold a free and fair national election by February 2026.

While the interim government initiated significant reform measures, substantial challenges persist in areas such as politics, the economy, and institutional accountability as reported by Transparency International Bangladesh (TIB). Systemic issues in governance and corruption remain largely unaddressed, prompting concerns that this may undermine the democratic aspirations of the uprising. According to the Ain o Salish Kendra, the interim government failed to fulfil the public desires following the uprising.

On 5 August 2024, General Waker-uz-Zaman, the Chief of the Army Staff, handed the resignation of Prime Minister Sheikh Hasina to President Mohammed Shahabuddin following the uprising. President Shahabuddin immediately started the process of meeting with political leaders, key coordinators of the protest and civil society members from around the country to discuss the formation of an interim government.

Amidst these deliberations, the student representatives who had been instrumental in the uprising expressed strong opposition to a military-led administration and nominated Muhammad Yunus, a Nobel laureate and renowned advocate for poverty alleviation and democratic governance with a global reputation, perceived neutrality and widespread acceptability, to serve as Chief Adviser of the interim government. After discussions involving the President, military officials, and student representatives, Yunus was appointed as interim leader with hopes that his leadership would restore democratic governance after years of political turmoil and authoritarianism. This was followed by the dissolvement of the parliament on 6 August 2024 by the President, Mohammed Shahabuddin.

While the Constitution of Bangladesh has not provided for an interim government since 2011, the Yunus government is deemed legitimate due to the doctrine of necessity. Bangladeshi courts have taken the line that Hasina's resignation created a situation for which there was no constitutional remedy. Not only does the Bangladeshi legal system no longer account for transfers of power, but there was an urgent need to oversee state affairs.

Yunus was sworn in as the Chief Adviser of Bangladesh in a ceremony at the Bangabhaban on 8 August 2024. President of Bangladesh Mohammed Shahabuddin administered the oath ceremony. Foreign diplomats, civil society members, top businessmen and members of the former opposition party and other guests attended the state ceremony. Yunus and the President signed the oath documents of the office.

On 9 August 2024, Yunus visited injured people at Dhaka Medical College Hospital. On 10 August 2024, he also visited the home and family members of Abu Sayed and paid respects to Sayed's grave in Rangpur. On 13 August, he visited the Dhakeshwari National Temple, the main place of worship for the Hindu minority in the capital city of Dhaka to meet the leaders of the Hindu community and denounced the post-resignation attacks on Hindus and other religious and ethnic minorities.

As head of government, Yunus delivered his first address to the nation on 25 August 2024. He outlined the proposed reforms in his half-hour speech. In the speech, he sought for constitutional and electoral reforms and promised to reform the country's economy, education, health, human rights, election system, legal system etc. in many other areas. On 11 September, Muhammad Yunus announced 6 commissions to fulfil the interim government's intentions to reform the electoral system, police administration, judiciary and public administration in Bangladesh alongside strengthening anti-corruption measures and amending the constitution avert from the previous authoritarian regime.