It is argued that urbanization offers significant opportunities to reduce
poverty and to promote sustainable development in Nepal, which is still at an
incipient level of urbanization. Yet, there is tremendous pace of urban growth,
resulting in multiple infrastructure and environmental challenges and there have
been numerous efforts over the years to manage urban areas. This paper intends to
analyse urban environment and its challenges and consequences, based on available
data and substantiated it with three case cities. Finally, the paper provides some
urban policy measures for intervention to ensuring sustainable and inclusive growth
and development of urban areas in Nepal.