Poultry industry is one of the strong pillars of Nepal’s agricultural production system, contributing around 4% in the national gross domestic product (GDP). Nepal is self-reliant in poultry meat and egg production. This sector provides employment to thousands of people and has become a major source of income to rural people. Low investment cost, less manpower requirement, and quick returns attract many investors towards poultry farming and hence the population and productivity of poultry is increasing year after year. Different viral, bacterial, protozoal and fungal diseases, including influenza, fowl typhoid, coccidiosis and mycotoxicosis, cause tremendous economic loss to the poultry sector of Nepal each year. Vaccines can be an effective preventive measure against poultry diseases and Nepal government together with the private sectors produce vaccines against different poultry diseases. Still, poultry vaccine production within the country is not enough and depends on imports from other countries. Considering the continuous growth in the poultry production and constant threat of disease outbreaks, government of Nepal as well as private sectors should invest more on vaccine production within the country. This article explains the current status of poultry production and vaccine development in Nepal.