Sheikh Hasina's tenure as Prime Minister of Bangladesh began on 23 June 1996, when she assumed office after her party, the Awami League, won the general election, succeeding Khaleda Zia's Bangladesh Nationalist Party (BNP). Her first term lasted until 15 July 2001. She returned to office on 6 January 2009 following her party's landslide victory in the 2008 general election and had further electoral wins in 2014, 2018 and 2024 general elections, though these elections was widely criticised for lacking transparency, with opposition parties boycotting those elections and international observers alleging vote manipulation and suppression.

Her premiership ended in August 2024 following the Student–People's uprising against her government, in which, she resigned and fled to India, marking the conclusion of her 15-year uninterrupted rule.

The Awami League (AL), with other opposition parties, demanded that the next general elections be held under a neutral caretaker government, and that provision for caretaker governments to manage elections be incorporated in the constitution. The ruling BNP refused to act on these demands.

Opposition parties launched an unprecedented campaign, calling strikes for weeks on end. The Government accused them of destroying the economy while the opposition countered that the BNP could resolve the issue by acceding to their demands. In late 1995, the members of parliament of the AL and other parties resigned en masse. Parliament completed its five-year term and the February 1996 general election was held. The election was boycotted by all major parties except the ruling BNP, who won all the seats in the parliament as a result. Hasina described the election as a farce.

The new parliament, composed almost entirely of BNP members, amended the constitution to create provisions for a caretaker government (CTG). The June 1996 general election was held under a neutral caretaker government headed by retired Chief Justice Muhammad Habibur Rahman. The AL won 146 seats, a plurality, but fell short of a simple majority. Khaleda Zia, leader of the BNP who won 104 seats, denounced the results and alleged vote rigging. This was in contrast with the neutral observers who said that the election was free and fair.

Hasina served her first term as Prime Minister of Bangladesh from June 1996 to July 2001. She signed the 30-year water-sharing treaty with India governing the Ganges. Her administration repealed the Indemnity Act, which granted immunity from prosecution to the killers of Sheikh Mujib. Her government opened-up the telecommunications industry to the private sector, which until then was limited to government-owned companies. In December 1997, Hasina's administration signed the Chittagong Hill Tracts Peace Accord, ending the insurgency in the Chittagong Division for which Hasina won the UNESCO Peace Prize. Her government established the Ashrayan-1 Project while bilateral relations with neighbouring states improved. Hasina's government completed the Bangabandhu Bridge mega project in 1998. In 1999, the government started the New Industrial Policy (NIP) which aimed to strengthen the private sector and encourage growth.

The Hasina government implemented some reforms to different sectors of the economy, which resulted in the country attaining an average of 5.5% GDP growth. The consumer price index remained at 5%, lower than other developing states who experienced 10% inflation. The Fifth Five-Year Plan (1997–2002) of the government placed an emphasis on poverty alleviation programmes which provided credit and training to unemployed youths and women. Food-grain production increased from 19 million tons to 26.5 million tons while the poverty rate reduced. A Housing Fund was established to provide fiscal assistance to those homeless as a result of river erosion. The government launched the Ekti Bari Ekti Khamar scheme which accentuated the incomes of the poorer segments of society through household farming.

The Hasina government adopted the New Industrial Policy in 1999 which aimed to bolster the private sector and attract foreign direct investment, thus expediating the globalisation process. The NIP aimed for 25% of the economy to be industry based with 20% of the country's workforce employed in industry. It encouraged the institution of small, cottage and labour-intensive industries with an onus on skill development for women for employment, development of indigenous technology and industries based on local raw materials. The NIP allowed for foreign investors to own 100% equity in Bangladeshi enterprises without prior approval from the government and all but four sectors of the economy were opened up to the private sector.