Medicinal and aromatic plants (MAPs), a subcomponent of Non-Timber Forest Products (NTFPs), are one of the important sources which supply the rural population with cash income. Nepal’s unique topography and varying climates have resulted in floral species count of 11,971, accounting for 3.2% of the world’s total flora. Department of Plant Resources (DPR) reported an increase in medicinal plant species from 700 to 819, with 285 endemic plant species from 43 families and 238 plant species chemically tested for medicinal significance. MAPs can be found at elevations ranging from 100 to 5500 m. The highest MAPs species richness was reported in the middle gradient. Despite having low plant diversity, the commercial values of the NTFPs found in Nepal’s mountains are the highest. The government of Nepal has prioritized 30 different MAP species for economic development, 12 species for cultivation and research, and imposed restrictions on the export of 12 species. Mid-Western and Far-Western development regions of Nepal account for more than 85% of total herbs collection in Nepal. About 80% of the population in Nepal depends upon MAPs for their primary health care needs. Around 100 Nepalese NTFPs are traded, but only 20 species account for 80% of the total trade in terms of volume and value. Nepal is ranked 42nd on the list, with $7.4 million in MAP exports, and 62nd on the list, with $3.3 million in essential oil exports. The overall contribution of NTFPs to national GDP was estimated to be 5%. In order to ensure food safety, reducing poverty, and improving livelihood, the promotion and domestication of NTFPs, proper harvesting mechanisms, and improved processing techniques are crucial.