Bangladesh has fared better than India, Pakistan and Sri Lanka in the Global Peace Index 2014.
Bangladesh is ranked 98th on the list of 162 countries, a significant improvement from last year's position of 105th.
Put together by the Institute for Economics and Peace, the GPI takes into consideration three broad themes involving ongoing domestic and international conflict, militarisation, and social safety and security.
In South Asia, Bangladesh is the third most peaceful nation, coming after Bhutan and Nepal which are placed 16th and 76th.
Afghanistan, however, continues to be the least peaceful nation in South Asia.
Afghanistan, which topped last year's list of least peaceful countries, has been replaced by Syria due to the latter's ongoing civil war. South Sudan, Iraq and Somalia are ranked the third, fourth and fifth least peaceful countries.
Europe remains the most peaceful region in the world with Iceland topping the list and Denmark, Austria, New Zealand and Switzerland closely following.
Qatar, Georgia, Zambia, Haiti, Argentina, Chad, Nepal, Burundi and Liberia are categorised as countries at risk of "small to medium deteriorations in peace."
The GPI shows that the world has become less peaceful each year since 2008.