Out of 5856 flowering plants recorded in Nepal, 690 species are identified as medicinal plants. A vast majority of rural people in Nepal still practice traditional knowledge and depend on medicinal plants for primary health care. Collection and trade of Medicinal and Aromatic Plants (MAPs) has also been the source of their income. On the other hand, a huge quantity of Non Timber Forest Products (NTFPs) is exported from Nepal every year, majority of which are MAPs. In the fiscal year 2000/2001 approximately 3200 tons of NTFP species was exported from Nepal contributing to only NRs. 14.9 million as revenue. Medicinal plants of commercial value are in a state of threat due to deforestation and over harvesting. For this reason conservation, management and sustainable utilization of medicinal plants is necessary for Nepal. Threat assessment, cultivation practices and regularize systems for conservation and management are major activities for sustainable utilization of MAP resources. His Majesty's Government of Nepal has recently adopted Herbs and NTFP Development policy to develop this sector.