The most important aspect of biodiversity prospecting is the exploration of biodiversity for commercially valuable genetic and biochemical resources. Biodiversity prospecting provides economic value to ensure long-term conservation of natural biodiversity in poor countries. Biodiversity of Nepal is unique within its small territory. It has one of the richest biodiversities in the world as far as ecosystem diversity and species number is concerned. However, the country's biodiversity is disappearing due to habitat loss, forest destruction, degradation and over- exploitation of forest resources, population growth and poverty, illegal trade, etc. Some of the biggest challenges, opportunities and constraints to conserving biodiversity in Nepal are discussed here.