This paper presents global scenario of higher education and tries to show the challenges faced and reformation to be made in higher education in Nepal, in the future as well as see both Nepalese and Indian societies in a similar way without discrimination. Problem Statement: The problem of this study is, What challenges has higher education system faced and what reformation is needed for inclusive and equitable societies between Nepal and India? Purpose: The purpose of this research paper is to make close links between Nepal and India through higher education by making inclusive and equitable societies with the roles of civil society. Methodology: The methodology of this study is document analysis and interview with some professors. Design: This is a qualitative study and no numerical data are used here. Implications: This research paper has got in – depth implications for the people of Nepal and India which shows that these two countries have got similar cultures, societies, religions and common ways of dealing to each other as well as open access to higher education for the people of both countries in either sides. Value: This paper has got great value to make close relation among the group of people living in Nepal and India and avoid discriminations among them. Nepal is a country situated in the lap of Himalayas in Asia which lies between the two large countries; India and China. Nepal and India are very close neighbours having same cultural, social and religious base. There is open border between these two countries. So, system of one affects another. The higher education system in Nepal is also same; of two types; fully funded by government and private sector. Among seven universities in Nepal, only two of them are fully funded by government- Tribhuvan University and Mahendra Sanskrit University. Tribhuvan University is the first university in Nepal and has been the root of higher education in Nepal since 1959. The main exchange of higher education in Nepal is related to Indian systems. But nowAll of the universities and their colleges are facing the impact of globalization. There are changes in higher education system at present which have caused global challenges across countries. Due to global challenges, there are problems in building inclusive and equitable society, which is under the need between Nepal and India. Globalization has made this world as a narrow place and there is mobility of students, teachers and academic group for different purposes all round the world without restriction for quality education. Due to globalization, there is flow of people, goods, ideas and knowledge all round the world. There are challenges in higher education system of Nepal and India in terms of demographic change, socio-economic role, equity, access, convergence of higher education, divergence for inclusion, study subjects, quality and relevancy, technology, brain drain, funding, politics and technology. These are global issues in higher education today which need to be addressed by educational policy makers to build inclusive and equitable society. This paper shows some relations between higher education and society to be equitable and inclusive among the people between India and Nepal.