Nepal is embracing a sustainable energy transition by delving into green hydrogen production to capitalize on its vast hydropower resources. With an estimated 80 GW of hydropower capabilities, the nation is making strides towards a cleaner energy future. Prime Minister K.P. Sharma Oli's recent inauguration of Nepal's first hydrogen refueling station and the introduction of the nation's first hydrogen-powered vehicle signify significant progress in this endeavor. Despite the exciting prospects of producing green hydrogen at low costs, estimated between $1 and $2 per kilogram, challenges lie in ensuring efficient distribution, storage, and refueling infrastructure. Nepal faces crucial decisions regarding resource allocation and technological investments to overcome these hurdles. While green hydrogen presents a promising avenue, the discussion also includes the growing popularity of electric vehicles (EVs) in Nepal. The economic and practical advantages of EVs, which are nearly 4.7 times cheaper to operate than petrol vehicles and 3.6 times more economical than diesel counterparts, highlight the existing synergy with Nepal's electricity grid and the public's increasing interest in sustainable transportation. Furthermore, the article delves into the complexities of export opportunities and the potential for green ammonia production in Nepal, emphasizing the importance of aligning strategies with economic realities and maximizing the country's hydropower capacities. Nepal must carefully navigate the evolving energy landscape, considering both ambition and pragmatism to ensure a sustainable and efficient energy transition. Ultimately, while the allure of green hydrogen is strong, Nepal's immediate focus should be on sustaining and enhancing its existing resources while strategically incorporating new technologies to create a harmonious and effective energy ecosystem.