Dermatophilosis is an economically important disease prevalent in Bangladesh. The study was undertaken to determine the prevalence, clinical and laboratory diagnosis and to detect effective therapeutic management of bovine dermatophilosis in BAU Clinic, surrounding areas of BAU Campus and six commercial dairy farms at Chittagong Metropolitan area from January to October, 2007. The study involved examination of 1830 cattle of which 217 were male and 1613 female. Very close visual inspection and palpation of the entire skin surface of the body were the clinical method for examination of animals. Crusts, skin scraping, plucked hair from live animals and skin and regional lymph nodes from dead animals were collected aseptically. Isolation and identification of the Dermatophilus congolensis, biochemical tests and histopathological study were conducted to confirm the disease. Long acting oxytetracycline (Renamycin-LA® injection, Renata Animal Health) along with topical use of 1% Alum (Potassium Aluminium Hydroxide) was found to be effective therapeutic management in the field condition. The prevalence of Dermatophilosis was found 13.55%(248) out of 1,830 cattle. The disease mainly seen in rural household farm (16.52%) and in intensive dairy farm (2.11%) was of low prevalent. Higher incidence rates were recorded in young cattle (17.26 to 18.15%), male animals (14.74%) and indigenous cattle (16.49%). Management conditions, age, breed and sex of animals had highly significant (p< 0.01) influence on the bovine dermatophilosis.