Due to the majority of recent job growth, the informal economy has continued to expand, especially in developing and transitional nations. Because they are unable to start their businesses or find employment, the majority of people have been moving into the informal sector in place of the formal economy. This study intends to explore factors that affect female migrants to the informal sector in Dhaka, Bangladesh. For this study, the authors used a qualitative approach and utilized neoliberalism and dualism as theoretical framework. To achieve study objectives, the authors conducted 25 semi-structured in-depth interviews, four focus groups, and six months of participant observation. The thematic data analyses were performed using the Granheim approach and NVivo-12 software. The research evidence revealed that participants’ low socioeconomic and educational status primarily influence female migrants’ involvement in this informal sector. The industry’s low entrance barriers and low investment requirements facilitate easy movement. According to the findings, the formal sector frequently requires complex procedures, whereas the informal sector has flexibility, accessibility, and job availability. Consequently, people are drawn to this industry. Most participants stated that they obtained informal employment through their peer networks. The study also discovered that the informal sector is the last destination for the unemployed. However, this article can be used to lay the groundwork for future research as well as to broaden the ongoing conversation about the informal sector, particularly women’s empowerment through informal employment. Moreover, the study findings will be crucial for academicians, policymakers, stakeholders, and development practitioners to prepare a sustainable development policy for informal employment.