Foreign aid is voluntary transfer of money that one country gives to another, which can take the form of a grant, a gift or a loan for purpose of relief and rehabilitation, economic stabilization, defence, et al. It has been a debatable topic whether foreign aid yields a positive or negative connotation. Generally, foreign aid is necessary for the giving an impetus to the economic development of the least-developed countries at least to the point after which growth rate is attained on a self-sustaining basis or the economy becomes self-reliant. Nonetheless, there have been controversies regarding whether the foreign aid generates beneficial or detrimental effects to the developing countries. This paper endeavours to highlight the bright and dark sides of the foreign aid.