Research Study on the prospects of promoting Dhaka cloth production inNepal is aimed to explore the present situation and the future prospects of theexpansion of Dhaka industry in Nepal. Dhaka cloth is swivel woven through handloom traditional cloth. Its manufacturing is concentrated mainly in Kahtmanduvalley, Pokhara and Palpa and in recent years in the hills of eastern NepalTherathum etc. The research is conducted taking interviews with the owners ofPalpali Dhaka Udyog, Therathume Dhaka Udyog Dhaka weaves, Mahaguthi, Dhanakuta sisters entrepreneurs in Kupondole and visiting and interviewing inGharelu Udyog in Tripureswar and visiting some of the retail shops ofKathmandu valley, where different types of Dhaka are sold from different parts ofthe countries. A questionnaire is developed to be answered by the retail sellersand another questionnaire was developed by the Dhaka factory owners. Thequestionnaire include mostly with their production purchases, sales, weavingtechniques, yarn used dyeing methods etc. Secondary literature and informationare hardly used in this research paper.Possibilities of prospects for the expansion of exports lie inmodernization in certain segment of the sectors to ensure the right quality offabrics used in the garments extension of technical assistance, training andmodern techniques and designs. Dhaka weaves export the products in Norvey,Switzerland, Japan, America etc. In the past, it also used to supply in royalfamily. There is also a good prospect for selling of efficient manufacturing unitsin the form of export oriented joint ventures in response to the condisreableopportunities available in dynamic export market. Handloom units of the countrysubstituted by the big mills and factories can be organized and modernized forexport oriented handloom cloth production if well planned improvement in loomyarn consumption, methods and designs are made.