A field experiment was carried out at the Horticultural farm of the Bangladesh Agricultural Research Institute (BARI), Joydebpur, Gazipur, during September 2006 to April 2007 to investigate growth and yield of sweet pepper as inluenced by spacing. There were three levels of spacing viz. 50× 50 cm, 50× 40 cm, 50× 30 cm. The experiment was laid out in a Randomized Complete Block Design (RCBD) with three replications. Data were recorded on various parameters and subjected to statistical analysis. The plant spacing had significant variation in almost all the growth and yield components except pericarp thickness. Number of branches per plant, number of leaves per plant, stem girth, number of fruits per plant, days to first harvest, fruit length, individual fruit weight, yield per plant were found to be significantly increased with the increasing of plant spacing but plant height at different stages, number of fruits per plot, days to 50% lowering, fruit breadth, yield per plot and yield per hectare were found to be significantly increased with the decreasing plant spacing. Considering the yield of fruits per hectare, cost of production and net return, 50× 30cm spacing appeared to be recommendable for the cultivation of sweet pepper.