Sheikh Hasina's first term as Prime Minister of Bangladesh, from June 1996 to July 2001, was marked by significant achievements and progressive policies aimed at improving the country's socio-economic landscape and international relations. Her administration was pivotal in signing the 30-year water-sharing treaty with India for the Ganges River, a critical step in addressing regional water scarcity and fostering cooperation with India.

Under Hasina's leadership, Bangladesh saw the liberalization of the telecommunications sector, introducing competition and ending the government monopoly, which significantly improved the sector's efficiency and accessibility. The Chittagong Hill Tracts Peace Accord, signed in December 1997, ended decades of insurgency in the region, for which Hasina was awarded the UNESCO Peace Prize, highlighting her role in fostering peace and reconciliation.

Economically, her government's policies led to an average GDP growth of 5.5%, with inflation kept at a lower rate compared to other developing countries. Initiatives like the Ashrayan-1 Project for housing the homeless and the New Industrial Policy aimed at boosting the private sector and encouraging foreign direct investment, further globalizing Bangladesh's economy. The policy particularly focused on developing small and cottage industries, promoting skill development, especially among women, and leveraging local raw materials.

Hasina's administration also made strides in social welfare, establishing a social security system that included allowances for the elderly, widows, and distressed women, and setting up a foundation for people with disabilities. The completion of the Bangabandhu Bridge mega project in 1998 was a significant infrastructure achievement, enhancing connectivity and trade.

On the international stage, Hasina represented Bangladesh in various global forums, including the World Micro Credit Summit and the SAARC summit, enhancing Bangladesh's diplomatic footprint. Her government's successful completion of a full five-year term, a first since Bangladesh's independence, set a precedent for democratic stability. However, the 2001 general election results, which saw her party losing despite securing a significant portion of the popular vote, pointed to the challenges of the first-past-the-post electoral system and raised questions about electoral fairness, a contention that was met with international scrutiny but ultimately led to a peaceful transition of power.