Children are the source of humanity, human civilization and development (Pradhan, 1994). However, a recent data about child labour says 168 million children are working as a labour and in Asia child labour is about 78 million that are engaging in harmful situation, children at risk and that directly affecting children’s education, health and development (ILO, 2013) and see figure no. 1). However, children work and live in most health hazardous and risk conditions and they are exploited of their right to social, emotional, physical, moral development and basic right to education. So, this paper is highlighted existing situation of child labour, law and policy, challenges and difficulties, and possible solution for reducing child labour in Nepal.