This book aims to contribute to Nepal’s nation building process firstly by discussing key issues and challenges that have emerged in the federalism process. Secondly, it offers some key insights and lessons from other countries from which Nepal can learn to adapt a more devolved federal system. Thus, grassroots democracy can be fostered in the future creating a solid foundation for more a democratic, prosperous and resilient society. This is the first research-based book to specifically address the key issues and challenges of federalism in a comparative basis since the introduction of federalization in Nepal. It also intends to contribute to the existing body of knowledge by documenting and offering Nepal’s decentralization experience, federal constitutional provisions, its practice and learning.