Childhood stunting among preschool-age children stands as a serious public health problem to be addressed in Nepal. Applying the multi-level modeling approach to nationally representative data, in the overall, we provide evidence that the negative influence of maternal own education to childhood stunting occurs especially for mother’s higher level of education, but there exists substantial residential variations. Most interestingly, we provide new evidence of a strong negative community externality of maternal education on childhood stunting, even if mothers of children are uneducated. We also find mother’s height is negatively related to childhood stunting, regardless of mother’s educational attainment and place of residence, providing evidence of intergenerational transmission of maternal health.