Despite its crucial role on the contribution of the agricultural sector in the country’s economic development and associated improvement in people’s livelihoods, agricultural performance in Nepal is ineffective, leading to widespread food insecurity and lack of employment creation mainly due to the underperformance of agriculture education, research, and extension (AERE). The agriculture sector lacks the necessary commitments, infrastructure and resources required for its development, and the relevance of current agricultural education is in question. Development of agriculture is impossible without competent, committed, skilled and visionary human resources, which must be produced from education institutions. Agriculture research, another pivotal area, is not able to contribute at the desired level. Likewise, agriculture extension, a means to communicate knowledge and research findings to farmers, is in jeopardy due to bureaucratic manipulations. Hence, all three pillars of agriculture development (agriculture education, agriculture research, and agriculture extension) are collectively failing, as is evident by Nepal’s growing food imports every year. There are several reasons for the underperformance of AERE such as weak policy (e.g., from the institutions responsible for agricultural research, extension and education being placed under different ministries; incoherent vertical functional linkages), politicization, bureaucratic control, underfunding (only 0.04% of the country’s annual budget is allocated to research across all areas of agriculture, including livestock); insufficient or weak human resources, poor resource planning and weak implementation of policies and regulations. Under this context, in this chapter, we discuss the current state of AERE and identify gaps with the goal of enhancing the future performance of the agriculture sector. We argue that a paradigm shift is needed in AERE, which requires a stronger dedication from all key stakeholders.