Ethnic groups in Nepal are delineated using language, ethnic identity or the caste system in Nepal. They are categorized by common culture and endogamy. Endogamy carves out ethnic groups in Nepal.^[2]

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Nepal's diverse linguistic heritage evolved from 2 major language groups: Indo-European languages, Tibeto-Burman languages. Nepal's languages are mostly either Indo-European or Sino-Tibetan, while only a very few of them are Austro-Asiatic and Dravidian.

Out of 123 languages of Nepal, the 48 Indo-European languages constitute the largest group in terms of the numeric strength of their speakers, nearly 82.1%^[3] of population. Nepali, Bhojpuri, Maithili, Awadhi, Tharu languages, Urdu, etc. fall in this group.

The Sino-Tibetan family of Nepal's languages forms a part of its Tibeto-Burman group. Though spoken by relatively fewer people than the Indo-European family (17.3%^[3] of population), it includes a greater number of languages, about 63 languages. Languages belonging to this group are Tamang, Nepal Bhasa (Newar), Magar, Limbu, etc.

Tribhuvan University began surveying and recording threatened languages in 2010 and the government intends to use this information to include more languages on the next Nepalese census.^[4]

Hill status i.e. (Brahmin/Bahun and Chhetri castes) and the upper-caste segments of Newars dominated the civil service, the judiciary and upper ranks of the army throughout the Shah regime (1768–2008). Nepali was the national language and Sanskrit became a required school subject. Children who spoke Nepali natively and who were exposed to Sanskrit had much better chances of passing the national examinations at the end of high school, which meant they had better employment prospects and could continue into higher education. Caste system, prevalent among Hindus, was made illegal in 1961 by Naya Muluki ain. ^{[5][6][7][8][9]}

The population wise ranking of 125 Nepalese castes groups as per 2011 Nepal census.^{[3][10][note 1][11]}