Iron supplementation is associated with side effects and thus reduces the intake compliance. Because it has fewer side effects, a recent trial recommended low-iron micronutrient powder (MNP) for the prevention of anemia in Bangladeshi children exposed to a high concentration of iron from drinking groundwater. In the present study, we hypothesize that the low-iron MNP is a potential intervention to prevent childhood anemia in the low groundwater-iron settings in Bangladesh. A cross-sectional study was conducted in Bangladesh with children aged 2-5 years who drank groundwater containing a low level of iron (0-<2 mg/L).The combined intake of iron was calculated from the key sources--diet, groundwater and MNPs. The intakes of iron were compared against the standard reference intake. The children’s hemoglobin was measured using a photometer. Combined intake of iron from dietary, groundwater and low-iron MNP in children was 5.8±2.0 and 6.9±2.5 mg/day comprising 193% and 169% of the Estimated Average Requirement in the 2-3 year-old and 4-5 year-old subgroups, respectively. Combined intake of bioavailable iron from dietary and groundwater sources was 0.42±0.023 and 0.22±0.019 mg/day in children exposed to groundwater concentration 0.8-<2.0 mg/L and 0.0-<0.8 mg/L respectively (p<0.001). The mean concentration of hemoglobin in the respective groups was 12.17±0.94 mg/dl and 11.91±0.91 mg/dl (p=0.30). The combined intake of iron from dietary and groundwater sources was associated with maintenance of hemoglobin concentration at the non-anemic level in most of the children. The finding highlights the potential of low-iron MNP in controlling childhood anemia in this setting.