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The period since the 1990s witnessed a strong economic performance and labor demand in many countries in the Middle East, East Asia, and West, which coincided with the major political turmoil in Nepal causing enormous increase in emigration and foreign remittance. Using micro-data for 1996 and 2004, this paper examines foreign remittance to Nepal and its socioeconomic implications. While the increasing values of foreign remittance have some positive effects on reducing poverty and income inequality, findings suggest that most of the benefits may have favored the socioeconomically more advantaged sections of society. The paper discuses implications of these and other findings in the changing socioeconomic and policy contexts in Nepal.