This paper focuses on intergovernmental relations (IGR) in Nepal, the world’s newest federal nation, through a descriptive account of its political, financial, and administrative aspects. It also depicts the major achievements and challenges seen during implementation. The Constitution lists the exclusive and concurrent powers of the federal, provincial, and local governments, and it calls for coordination and cooperation with each other in exercising these powers. Some problems have arisen while exercising these powers among three tiers of government, but from the perspective of intergovernmental coordination and cooperation, there are no significant problems in Nepal's federalism. However, in order to strengthen the implementation of federalism in Nepal, there is a need for regular and intensive discussions and interaction between the federal, provincial, and local governments.