Green hydrogen is emerging as a pivotal solution for Nepal's transition to a low-carbon economy, leveraging its abundant hydropower and solar energy potential. With over 20,000 MW of hydropower in development and surplus electricity during wet seasons, Nepal is exploring green hydrogen as a means to utilize this excess energy efficiently. Estimates show that Nepal could produce green hydrogen at a competitive cost, offering a cleaner alternative to fossil fuels in various sectors. The applications of green hydrogen in Nepal span across re-electrification, ammonia and fertilizer production, industrial heat, zero-emission transportation, and more. By leveraging just a portion of its surplus hydropower, Nepal could potentially replace a significant amount of imported urea with domestically produced hydrogen, showcasing the economic and environmental benefits of this technology. However, challenges like high upfront costs, infrastructure limitations, and legal gaps pose obstacles to widespread green hydrogen adoption. To overcome these barriers, Nepal needs to establish the necessary infrastructure for hydrogen production, storage, and distribution, along with implementing supportive policies and regulatory frameworks. Introducing incentives and fostering public-private collaborations can further accelerate the integration of green hydrogen. Institutions like Kathmandu University's Green Hydrogen Lab are at the forefront of driving green hydrogen initiatives in Nepal, emphasizing the importance of collaboration between different stakeholders. By aligning with international organizations like the Global Green Growth Institute, Nepal aims to scale up green hydrogen projects and create a conducive environment for sustainable energy practices. Overall, embracing green hydrogen presents Nepal with an opportunity to enhance its energy security, reduce carbon emissions, and lead the way in sustainable energy production. By addressing existing challenges and leveraging its natural resources, Nepal can position itself as a pioneer in green hydrogen technology, contributing to global decarbonization efforts and fulfilling its climate commitments under the Paris Agreement.