Nepal is one of the most natural disaster prone countries in the world. Variable climatic conditions and active tectonic processes have made her vulnerable to various types of natural disasters. In addition, other man‐made factors such as unplanned settlement, lack of public awareness, increasing population, weak economic condition and low literacy rate have also made her vulnerable to various types of natural disasters. With these factors in view, advanced technology and sufficient resources are really needed to mitigate natural disasters in Nepal. Moreover, various types of training and other educational programmes are highly needed to raise disaster awareness among the vulnerable population. Hazard mapping, vulnerability assessment and risk analysis are to be developed. Being a developing and agriculture based country insurance has not yet been widely developed in Nepal except in some big establishments and households. Therefore, the role of insurance has to be recognised in the risk management in Nepal. The Department of Disaster Management in the Ministry of Home Affairs is the focal agency for disaster management in Nepal, which formulates national disaster management policies and implements them. The preparedness and mitigation, immediate rescue and relief work, data collection and dissemination, and the mobilisation of funds and resources are the main responsibilities of the Department. Despite various problems, the Department is gradually moving forward to improve the disaster management situation in Nepal. Being a developing country Nepal needs support from international communities and friendly nations to strengthen her capabilities for disaster mitigation programs.