On 28 June 2023, a single judge bench of Justice Til Prasad Shrestha issued a historic order directing the government to establish a separate register for non-traditional couples and sexual minorities and to temporarily register them. The full bench of the Supreme Court has yet to deliver a final verdict. Some observers noted that Justice Til Prasad Shrestha exceeded his authority. It is estimated that around 200 third gender activists who rushed back to their villages may register their marriages soon.

On 29 November 2023, the first same-sex couple in Nepal was able to register their marriage in the Dordi municipality, five months after the interim order was given. However, there are reports that other same-sex wedding applications have not been consistently registered.

In April 2024, Nepal's Ministry of Home Affairs ordered the recognition of same-sex marriage in all the country's jurisdictions.

The Supreme Court of Nepal issued its judgement, ruling that under Rule 8(1)(h) of the Immigration Rules a foreign national who submits a valid marriage license with a Nepali citizen is eligible to obtain an "NT Visa" as a dependant. The Supreme Court further ruled that the Immigration Rules do not specify that a foreign national applying for an NT Visa must either be of the same or opposite gender. Foreign same-sex spouses of Nepali citizens are now eligible to obtain an NT Visa as a dependant.

Reportedly, some ceremonies were performed but were offered no official recognition.

In 2007, a landmark ruling in Nepal provided nonbinary people with legal recognition on the basis of self-determination.

Section 12 of the Constitution of Nepal (2015) was written in such a way that requires the Nepalese Citizenship Certificates to include gender identity (as opposed to just gender). This provision only applies to the first Nepalese Citizenship Certificate issued, not to an already-issued certificate. However, the decision of Sunil Babu Pant, Anik Ranamagar and others v. Government of Nepal (2017), ruled that existing citizenship certificates should also be amended.

Nepal began issuing passports with “third gender”/“O” markers, after the Supreme Court decision Dilu Dibuja v. the Ministry of Foreign Affairs (2017) ordered that a transgender person should be given a passport that matched their Nepalese Citizenship Certificate.

In 2019, Nepal’s House of Representatives proposed a bill to amend the Citizenship Act that would impact the rights of trans persons. The bill proposed an onerous proof of "sex change" as a requirement for a person to obtain a change of gender marker on their Nepalese Citizenship Certificate. This goes in contradiction with the above Supreme Court cases.

In addition, many transgender people who have applied for a gender change have been able to see their gender marker changed on behalf of the civil status.

Despite this, the process of a legal gender change was only permissible for nonbinary people and trans women couldn't change their markers to female or trans men to male until 2024.

Until 2007, there was no legal gender recognition provided in Nepal.

No constitutional protections against discrimination in Nepal.