The diverse geography and climate of Nepal also contributes to various medicinal plants. The Himalayan region is recognized as the breeding ground for such medicinal plants, which are used not only in allopathic pharmacopeias but also in traditional rural therapies, Homoeopathic medicines and Ayurvedic medicines. A large section of Nepalese population, mainly in rural areas (at times urban as well) depend on ancient practices such as Ayurvedic or herbal practitioners. These plants are useful in pharmaceutical sectors but are getting rarer due to the degrading environment.

Medicinal plants are important components of the various foliage of Nepal where it can be found approximately 49.2% in the tropical zone (up to 1,000 meters), 53.96% in the sub-tropical zone (1,000 - 2,000 m), 35.7% in the temperate zone (2,000 - 3,000 m), 18.9% in the sub-alpine zone (3,000 - 4,000 m), and 7.14% in the alpine zone (4,000 m upwards). There are about 1,400 kinds of medicinal plants utilized by Ayurvedic and traditional healers in Nepal.

Some of the important and well-known medicinal plants of Alpine & sub-alpine zone are: Aconitum Spp., Picrorrhiza scrophularaeflora, Swertia multicaulis, Rheum emodi, Nardostachys jatamansi, Ephedra gerardiana, Cordyceps sinensis, Dactylorhiza hatagirea.

Similarly we can find medicinal plants in Tropical and sub tropical areas like: Terminalias, Cassia fistula, Cassia catechu, Aegles marmelos, Rauwolfia serpentina, Phyllanthus emblica, Ricinus recemosus, Acorus clams, Acacia concinnity, Butte monster etc.

 We can find Valeriana wallichii, Berberis, Datura, Solanum, Rubia, Zanthoxylum armatum, Gaultheria fragrautissima, Dioscorea deltoidea, Curulligo orchoidies in Temperate zone.

The Medicinal plants are  abundantly found in the Terai region of Nawalparasi, Chitwan, Bardiya, Dhanusha, Mid-hilly Region of Makawanpur, Syanja, Kaski, Lamgjung, Dolakha, Parvat, Ilam, Ramechhap, Nuwakot and in the Himalayan regions of Dolpa, Mugu, Humla, Jumla, Manang, Mustang and Solukhumbu.

The institutions manufacturing Ayurveda medicinal products are Singha Durbar Vaidhya Khana Vikas Samiti, Kathmandu; Gorkha Ayurveda Company, Gorkha; Arogya Bhavan, Kathmandu; Siddha Ayurvedic Pharmacy, Butawal; Pashupati Ayurveda Bhavan, Sarlahi; and Classical Herbal Group, Kathmandu.