Nepal is between the two big Asian countries India and China and occupies a very strategic location where almost all the big countries have special interest due to the existence of Tibetan Region of China in the north of Nepal and the gigantic economically viable plains of India in the south. Nepal itself has been struggling for survival in this location throughout history. Nepal’s rich natural resources are of particular interest to the southern neighbor. Nepal, thus, is a unique example among the small states which has conducted its foreign policy for its survival as well as to satisfy the immediate neighbors and at the same time the bigger countries from outside the region. Thus, the study of Nepal’s foreign policy is of utmost importance to the students of International relations who intend to understand international politics from a small nation’s perspective, especially from that of a country like Nepal.