Nepal, a landlocked Himalayan Nation, has a large unmet burden of mental health problems. The National Mental Health Survey has shown a prevalence of mental disorders of around 10%. Though there has been steady improvement in the service delivery and trained manpower over the last decade, Nepal faces a severe shortage of mental health professionals, with only a small number of psychiatrists, clinical psychologists, and psychiatric nurses available, predominantly in urban areas. The training in mental health, mainly postgraduation in psychiatry and M.Phil. in psychology, has started only recently, two decades back. Though undergraduate psychiatry teaching is now a mandatory component in all medical colleges, there is heterogeneity in the duration of teaching hours and percentage of curriculum among universities. In this chapter, we aim to discuss the historical background, current context, challenges, and ways out in the context of undergraduate, postgraduate psychology teaching and training along with other nonspecialized mental health training in the context of Nepal.