More than two-thirds of the total population of people with disabilities live in low and middle income countries and are one of the poorest and most marginalized groups in society. However, due to the dearth of data, research on disabilities and poverty is rare. With this paper, we intend to fill this void by examining the factors related to the poverty of people with and without disabilities in Nepal, using the nationally representative dataset Nepal Living Standard Survey (NLSS-2010/2011). For the analysis, we use the Foster-Greer-Thorbecke (FGT) poverty measures. Results show that figures for poverty headcount, incidence and severity are higher among people with disabilities compared to their counterparts without disabilities, indicating that they are more vulnerable to fall into the poverty trap. One striking finding is that persons with disabilities having at least 10 years of schooling are found to be not poor, justifying the greater need for investment in the education of individuals with disabilities. Additionally, males without disabilities are poorer than their female counterparts. This is not the case for females with disabilities who are poorer than their male counterparts, suggesting the likelihood of women with disabilities facing dual discrimination – both as a woman and a person with disabilities. Likewise, regardless of disability status, persons living in rural areas, having lower levels of education, less land and deprived of access to various facilities are found to be poorer. Furthermore, people classified to be in a low caste are the poorest among all groups. These findings thus suggest the importance of addressing the issue of persons with disabilities and other marginalized groups in development efforts to reduce poverty and to make development inclusive and sustainable.