Abstract: In this paper, we addressed the challenges of urbanization and how smart cities and urban computing provide effective solutions. We examined smart cities, their advantages, and their implementation in Nepal. This paper focuses on using institutional frameworks, human capital, and technology for sustainable urban settings with innovation and growth. IoT, data analytics, and other smart city elements enhance the quality of life, resource management, and job opportunities. Projects aim to enhance living standards, inclusivity, and empowerment. Case studies from Amsterdam, Barcelona, Helsinki, Vienna, and Oslo provide insights. The paper contributes to understanding smart city development in Nepal, offering guidance for policymakers and stakeholders, and highlighting transformative potential.