Introduction: Self-esteem is a comprehensive personal evaluation of an individual's worth that involves a person's perception of self, it functions as a defense mechanism that individuals possess to safeguard themselves from psychological harm. This study aims to assess the prevalence of self-esteem and its associated factors among people living with physical disability. Methods: A cross-sectional study was conducted among people living with a physical disability residing inside Kathmandu Valley from August to November 2022 after acquiring ethical approval from institutional review committee of CiST College (Reference number: IRC/161/078/079). A total of 215 samples were taken for the study. A face-to-face interview technique was applied for data collection consisting of the Rosenberg self-esteem scale. Bivariate analysis applying a Chi-squared test and multivariable logistic regression was carried out to identify the factors associated with self-esteem at 95% CI and 5% level of significance (p-value <0.05).Results: It was observed that 71 (33.02%) participants had lower levels of self-esteem. Education, family type, the severity of disability, and family affection were the factors associated with self-esteem in bivariate analysis. In multivariable analysis, informal education (aOR: 3.932; 95% CI 1.129-13.696), poor family relationships were twice (aOR: 2.237; 95% CI 1.029-5.507), perceived severity of disability (aOR: 3.129; 95% CI 1.341-7.300) to be associated with lower self-esteem.Conclusions: The findings reveal that a significant portion of participants, approximately one-third, experience lower levels of self-esteem. Furthermore, factors such as education, family type, severity of disability, and family affection emerged as significant influencers of self-esteem.