This study reveals the value of bamboo to uplift the economic status of poor in rural Nepal. In-depth study on bamboo uses has been made in Koshi zone of Nepal. Interview with bamboo entrepreneurs, household observation, group discussion and in-depth study has been carried to garner more reliable information. Bamboo plantation in private land and commercialization of its product is a usual practice since time immemorial and well known as a key source for income generation to sustain the livelihood of marginalized and landless people. Poor,Dalits and ethnic communities are found more dependent on bamboo as it is easily available and cheap in comparison to other materials. Skilled poor people were found economically empowered by weaving different types of bamboo products focusing on traditional as well as modern market demand, selling and utilization of earned money to uplift the livelihood of the family. Especially women from marginalized community were found benefitted from bamboo species since they are able to send their children to the school. Bamboo is playing crucial role to uplift the economic and educational status of the deprived people in rural area of Nepal. Study found most of the bamboo resources are not fully utilized due to lack of proper management system. Traditional knowledge and skills on bamboo handicraft are not transferred to new generation due to changing occupation. Therefore, an integrated effort is required to develop bamboo entrepreneurship, promotion of cottage industries and conservation of traditional knowledge system to reduce the poverty in Nepal.