<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0203</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2010-08-23</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000818813</issuerCik>
        <issuerName>BITSTREAM INC</issuerName>
        <issuerTradingSymbol>BITS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001500605</rptOwnerCik>
            <rptOwnerName>NEW VERNON INVESTMENT MANAGEMENT LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Class A Common Stock, $0.01 par value per share</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1135462</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">By NV North American Opportunity Fund.</footnote>
    </footnotes>

    <remarks>As a result of a merger of Millennium Group LLC with and into New Vernon Investment Management LLC on August 23, 2010, New Vernon Investment Management LLC became the investment manager of NV North American Opportunity Fund.  By virtue of its relationship with NV North American Opportunity Fund, New Vernon Investment Management LLC may be deemed to indirectly beneficially own certain shares of Common Stock subject to this filing.  All of the shares reported on this Form 3 have been previously reported as beneficially owned on Forms 4 filed jointly by NV North American Opportunity Fund, Millennium Group LLC and Trent Stedman.  New Vernon Investment Management LLC disclaims beneficial ownership of all shares reported on this Form 3, except to the extent of its pecuniary interest therein.


* Pursuant to Power of Attorney attached hereto.</remarks>

    <ownerSignature>
        <signatureName>/s/ New Vernon Investment Management LLC, by Barton Aronson, Authorized Signatory*</signatureName>
        <signatureDate>2010-09-02</signatureDate>
    </ownerSignature>
</ownershipDocument>
