Based on Lok Raj Baral’s long observations and studies of Nepali and foreign policy, especially its responses to the changing dynamics of geo-politics, this collection of articles try to reflect on the multiple challenges faced by Nepal. In one sense, a lot changes are taking place in transforming Nepali society, economy and politics, in another sense, all these developments are paradoxically superfluous because of lack of institutionalization, political stability and minimum consensus needed on crucial areas of development. The context of domestic politics in Nepal’s relations with its two immediate neighbours– China and India– and occasional stresses and strains produced by the inability of political leadership to modulate relations is an important aspect of this collection.