With the increasing role of cities and human settlements in the overall development of the nation, our municipal areas require and deserve more strategic investments than ever before. With this on mind, the Ministry of Urban Development (MoUD) prepared National Urban Development Strategy (NUDS) to realize the vision of achieving balanced and prosperous national urban system following the National Urban Policy, 2007. Building on these policy documents, learning from the past experiences, and addressing national and international commitments, this National Report has evolved, and the MoUD proudly presents it to the Third United Nations Conference on Housing and Sustainable Urban Development, 2016 (Habitat III). The Habitat Agenda of Istanbul (Turkey, 1996) set twin goals of achieving adequate shelter for all and ensuring sustainable human settlements development in an urbanizing world. The National Report for Habitat III begins with the review of Nepal's progress on the Habitat Agenda; identifies key issues and challenges; and presents Nepal's New Urban Agenda. The New Urban Agenda is guided by national and international commitments, in particular to the Sustainable Development Goal 11 ("make cities and human settlements inclusive, safe, resilient and sustainable") of the 2030 Agenda for Sustainable Development. The National Report has been prepared through rigorous consultations with various stakeholders and experts. It is now time to move towards realization of the New Urban Agenda, which requires partnerships based on multisectoral engagement, participation, and collaboration. Sustainable urban development is our national goal and shared responsibility. I am confident that the implementation of the New Urban Agenda receives the same level of enthusiastic support from all stakeholders as was received during its formulation stage.