Despite the looming scarcity of agricultural land and rapidly growing demand for food and biofuel globally, more agricultural lands are being abandoned from farming than are being converted to agriculture. Therefore, there is increasing interest in reutilising abandoned croplands to mitigate the undesirable impacts of abandonment and address global challenges such as food insecurity, arable land scarcity and agrobiodiversity loss. Although a number of studies have examined the extent, drivers and impacts of abandonment at various temporal and spatial scales, few studies have investigated the dynamics and potential pathways for reutilising abandoned cropland. This study addressed this knowledge gap by analysing potential reutilisation options of abandoned croplands, considering the influence of socio-economic factors on farmer preferences for reutilisation options, and assessing the conditions that would create an enabling environment for productive reutilisation. Using a mixed methods approach, quantitative data was collected through a survey of 374 households and qualitative data from six focus group discussions in three districts of the Hill agroecological region of Nepal. The majority of farmers, regardless of abandoned cropland holdings, considered that abandoned croplands should be reutilised. The farmers identified seven options (Cash cropping, Fruit crop farming, Spice and medicinal crop farming, Fodder tree plantation, Cereal cropping, Woodlot plantation and Mixed subsistence farming) for reutilising of abandoned croplands. Farmers’ preference was comparatively higher for high value and cash-generating options for the reutilisation. Despite the dominance of traditional mixed subsistence farming in the area, the majority of farmers did not consider this system as a viable option for reutilisation. Structural and institutional factors, as well as labour constraints, were found important to create an enabling environment that motivates farmers for the reutilisation. Farmers’ greater preference for cash-generating options implies that the promotion of market-oriented farming on abandoned croplands could help to minimise abandonment and revitalise the Nepalese agricultural sector. The findings are relevant to other regions of the globe that have experienced cropland abandonment.