nternational trade is an engine of economic development. It affects economic, social and political affairs of a country. This work is an attempt to enquire into the same. In this study we tried intensively to investigate the role of Indo-Nepal Foreign Trade in Economic Development of Nepalese Economy. Authors have faith on this dictum that Trade relations are the basis of over all relations. Nepal has Trade relations with India since the time immemorial. Nepal's trade with India remained significant in the past till the first quarter of 20th Century. Patterns of trade between India and Nepal changed after India became independent from British rulers and Nepal also got rid to Rana Rulers in 1950. This study although covers a long period of Indo-Nepal trade relations but it concentrates especially, over the first decade of Economic Liberalisation (1990-2000) of Nepalese economy.