This is an exploratory study to find out how kotis (a category of homosexual) develop their sexual identity in a developing country like Bangladesh, which is predominantly a Muslim society. To do so, the six-stage model of homosexual identity development by Cass was adopted. Face-to-face unstructured interviews were conducted to collect data from 18 self-identified kotis. The study found that although the first four stages of Cass’s model could be applied to understand the identity development process of the Kotis, the final two stages could not. Goffman’s stigma-management strategies have been used to explain why the final two stages cannot be applied and how the kotis manage stigma at every stage. The study concludes that the kotis in Dhaka cannot develop their sexual identity completely because of stigma attached with their identity and Cass’s model could be more applicable if stigma-management strategies are included.