Nepal is a small mountainous country, naturally divided into three physiographic regions, mountain, hill and tarai. From development and administrative perspective, it is divided into five development regions and 75 districts. The overall development situation of Nepal is gradually improving. However, the pattern and intensity of the development is found location biased. Selected pocket areas of hill and tarai districts are growing faster than others so the regional disparity is widening in many aspects of development. The study aimed to identify and analyze the situation of regional disparity among the districts in 1991, 2001 and 2005. It also aimed to identify the contributing factors of regional disparity. Agriculture and allied, Infrastructure and manufacturing, Socio economic, and Human development sectors are the four major sectors selected for the analysis. Within these four broad sectors, sixteen individual indicators are selected for the year 1991 and 2001 likewise nineteen indicators for 2005. The study is mainly based on the secondary data from different sources.