Nepal’s foreign policy in the post-Cold War era displayed both continuity and change. Continuity is evident in the persistence of key national priorities of the Cold War. The element of change appeared in a strategic reorientation of foreign policy, as Nepal began to view its geographical position between India and China as an opportunity for economic and infrastructural integration. In doing so, Nepal redefined its geographical significance by moving beyond the traditional ‘yam’ discourse and positioning itself as a bridge state—advancing continental and maritime connectivity through initiatives such as North-South road corridors, trans-border railways, aviation linkages with India and China, and strengthened transit negotiations. However, as was the case during the Cold War, constructing physical infrastructure that links two geopolitically rival states with ongoing border disputes inevitably draws geopolitical interest. Balancing the necessity of integrating Nepal’s infrastructure with that of its neighbours, while avoiding entanglement in their geopolitical and geoeconomic rivalry, remains a complex and daunting task for post-Cold War Nepal. This chapter explores these complexities to assess the extent to which Nepal was successful in asserting its agency, achieving its economic and political objectives. It further analyses how Nepal’s pursuit of economic diversification, concerns over debt dependence and connectivity initiatives intersect with the broader geopolitics of the region.