Nepal-India Bilateral Cooperation on Power Sector examines the strategic evolution of Nepal-India bilateral energy cooperation in hydropower development, cross-border electricity trade, and climate commitments. The paper analyse the historical foundations of energy cooperation, current institutional mechanisms and transmission connectivity, and highlights emerging regional initiatives, including trilateral power trade with Bangladesh. It also assesses policy frameworks, investment models, and regulatory challenges affecting cross-border electricity trade. Set against shared net-zero ambitions and Nepal’s long-term energy roadmap, the study underscores both missed opportunities and future potential for advancing clean energy integration, regional energy security, and sustainable economic growth in South Asia.