Nepal is a relatively small mountainous country surrounded by India to the south, east, and west and China to the north. Forest is one of the most important natural resources of Nepal. Some 35 major forest types occur in Nepal that change abruptly, owing to a wide variation of topography, climate, and edaphic conditions. Forests are the source of livelihoods of millions of people, in particular, for rural communities. Deforestation is one of the major environmental issues in Nepal. Deforestation pressures occur throughout Nepal but are most strongly felt in many parts of Tarai and Churia. In general, the drivers of deforestation and degradation are the mixture of direct and indirect causes, such as high dependency on forest resources, unsustainable harvesting practices, illegal harvest of forest products, infrastructure development, forest fire, natural calamities, encroachment, overgrazing, lack of good governance, and ambiguous policy. Deforestation has immediate consequences for the local population in terms of increased fuel scarcity, reduced supply of fodder, and leaf-litter manure. The unpredicted erosion, landslide, and lowland flooding, due to deforestation, are also major concerns in Nepal as well as in downstream countries. Several attempts have been made so far to control the deforestation and mixed success has been achieved. The focus of the government is on good forest governance through its long-term and shortterm policy provisions. Community forestry and protected areas systems in Nepal have contributed significantly in forest conservation. A priority has also been given to private forestry. Since the fuelwood is still the major energy source, alternative sources of energy should be provided on a subsidized basis throughout the country to reduce dependency on forests. Public awareness about the importance of forests and the consequences of deforestation are also important to control deforestation.