Chittagong Hill Tracts (CHT) is home to 12 indigenous communities in Bangladesh. Ethnicity and ethnic conflicts in the CHT has developed as consequences of British, Pakistani and Bengali Nationalism. Since the independence of Bangladesh in 1971 they have been struggling for their constitutional recognition. However, the government of Bangladesh rejected their demands and launched militarization in 1975. The government also resettled many Bengali people in the region. Resistances of indigenous communities have turned into conflict between two groups of people. A lot of people also died in the armed conflict between indigenous political parties and state military. After 20 years of conflict a peace accord was signed in 1997. This paper argues that the peace process remains detached from the local people. The accord is submerged by ideas and practices which do little to meet the demands of indigenous people who have been struggling for ethnic identities, land rights and militarization.