Nepal, due to its complex topography, socioeconomic vulnerabilities, and frequent exposure to natural and man-made disasters—including earthquakes, civil conflict, and pandemics—is at high risk for adverse mental health outcomes. There has been an enormous psychological impact during the different disasters and major events, such as the Maoist insurgency, the 2015 earthquake, and the COVID-19 pandemic, particularly among vulnerable populations like women, children, people with disabilities, and indigenous communities. Despite some policy progress, including the National Mental Health Strategy 2020 and disaster management frameworks, systemic challenges such as workforce shortages, fragmented services, and implementation gaps persist. There is a dire need for cross-sectoral integration for disaster management, proper community-based service delivery, and long-term research to better prepare for and mitigate the mental health consequences of future disasters and climate-related events in Nepal. This chapter explores the mental health impact of disasters and climate change, policies for disaster management, interventions, available research, challenges, and ways out for disaster mental health in the Nepalese context.