CBI is the premier and leading Investigating Agency of the Nation, which possesses the trust of the individuals, the Parliament, the Judicial sector, CBI has acquired popularity and a good reputation over a period of time, the organization has developed into a multifaceted, multi-disciplinary investigation organization with capacity, reliability and legal authority to investigate and prosecute offences, which is clear from the fact that it is burdened with the investigation of many significant cases of various descriptions. From the very inception of the agency, it has been investigating several economic crimes, special crimes, cases of corruption and other cases. But the fact remains that now, even CBI is not free from criticism because of its inefficiency, delay in the investigations and political interference, the CBI lacks constitutional position. The Central Bureau of Investigation is still regulated by the DSPE Act, making it a barrier for investigators to perform their duties in some cases. The present paper deals with the challenges faced by the CBI and how the working of the agency can be improved.