This publication examines Nepal’s foreign policy and economic diplomacy during a critical period of political transition, constitution writing, and peace-process consolidation. It highlights the need for Nepal to conduct effective diplomacy while safeguarding sovereignty, national interest, and international partnerships for peace and prosperity. The discussion emphasizes the growing importance of economic diplomacy in a globalized world, particularly in trade, investment, foreign aid, hydropower, information technology, tourism, and relations with India and China. It also underlines the need for skilled human resources, institutional coordination, and cooperation among government, private sector, and civil society actors. The publication argues that Nepal’s foreign policy should be guided by geographical realities, socio-cultural context, economic capacity, and long-term national development priorities.