This account describes the distribution, growth rate, importance, local genetic research on and management of small ruminants in Nepal. Feed resources and management systems (transhumance or sedentary) found in the major ecological regions (Trans-Himalayan or steppe; High Mountains; Middle Hills; Lower Hills; and Terai) are described. Most (44%) of the livestock is concentrated in the Middle Hills for which notes are given on the forest, commonly used fodder trees, crop residue availability, and feed from terrace risers and bunds, and from fallow land. The constraints to ruminant production are outlined and potentials and possible improvements (e.g. the development of silvopastoral systems, increasing fodder production by other methods, and proper utilization of agricultural by-products) discussed.