As of the 2021 UN World Urbanization Prospects revision, 57.5% of Nepal's population lives in urban areas, making it a predominantly urban country — though the pace and definition of urbanization vary by municipality.
This marks a significant shift from decades past, driven by migration to the Kathmandu Valley, Pokhara, and growing municipalities in the Terai. However, many "urban" zones retain semi-rural characteristics, and rural livelihoods remain central to the economy and culture.