This paper provides a comprehensive analysis of the challenges posed by non-tariff measures (NTMs) on Nepal's trade, particularly in light of its upcoming graduation from the least developed country (LDC) status in 2026. NTMs, which include policy measures other than tariffs, can significantly impact international trade by altering prices and quantities traded. While NTMs often serve legitimate purposes such as public health and safety, they can also act as trade barriers, creating procedural obstacles for exporters. The study highlights the dual impact of NTMs on Nepal’s trade, focusing on sectors like agriculture and pharmaceuticals where compliance costs are high. The paper discusses the potential loss of preferential trade treatments and more lenient rules of origin (RoO) post-graduation, which will necessitate significant adjustments in Nepal’s export strategies. It also examines the impact on subsidy regimes and the readiness of Nepal’s regulatory framework to handle these changes. The paper concludes with recommendations for capacity building and proactive international engagement to mitigate the adverse effects of stricter NTMs and ensure continued trade performance.