Nepal has undergone phenomenal change over the past 60 years, from the end of the Rana oligarchy to the more recent struggles with the Maoist insurgency. The country is now redefining itself as a democratic federal republic, a challenging transition for any nation. This report examines the nontraditional security challenges confronting Nepal in this new era and assesses the implications for the country’s political future, social policies, and overall security in the region.