Handicrafts in Nepal is very popular to everyone who were familiar about the Nepal and its religion. Specially, Thanka and carpets are popular around the world.

From the beginning up to the mid-nineteenth century, the rulers of the country promoted national industries and trade to various measures of production, promotion and encouragement. Saving national industry only imported commodities which were not produced locally. Towards the end of the nineteenth century Nepalese arts and crafts industry and the entire home based industries in general suffered a lot due to the general liberal import policy of the government. Prior to the establishment of British regime over India and entering a peace treaty with Tibet in 1904 A.D. Nepal was interpreted as the main route to Tibet for external trade with other countries. But the treaty of 1904 A.D. facilitated the British to open a new route between India and Tibet through Chumbic Valley and the trade route treaty of 1923 A.D. between Nepal and British India, which was not in favour of Nepal and had very unfavourable effects both on industries and on flourishing trade of the country.

Products such as metal statues, ethnic costumes, traditional silver jewellery, wood carving, religious and ritual objects like bells, vajra, stone sculpture, metal utensil, Prayer wheels, paubha painting, ceramics, Handmade Paper, Hand Knitwear, filigree, Bell, Vajra products are traditional Nepalese crafts.

Usually, what distinguishes the term handicraft from the frequently used category arts and crafts is a matter of intent: handicrafted items are intended to be used, worn, et cetera, having a purpose beyond simple decoration. Handicrafts are generally considered more traditional work, created as a necessary part of daily life, while arts and crafts implies more of a hobby pursuit and a demonstration/perfection of a creative technique. In practical terms, the categories have a great deal of overlap.