The study analyses political, economic and strategic developments in Nepal - China relations, post 1990. It attempts to examine mutual concerns shared by Nepal and China vis-à-vis' each other and outlines possible areas of convergence and divergence. It critically discusses the role of domestic politics in Nepal in shaping Nepal - China relations and Indian response to the burgeoning Nepal - China relations. The study unfolds with the historical narrative of Nepal - China relations. It primarily sheds light on the novelty of the bilateral relations that materialized in 1950. Major political transformation heralded in the region in 1950s: China emerged as a communist state, India liberated itself from the British colonial yoke and the autocratic Rana regime ended in Nepal. The study highlights the developments in Nepal - China relations after restoration of democratic in Nepal in 1990. It further delves into bilateral equations in contemporary times, focusing essentially on the former King Gyanendra's short regime and the period in which the former Maoists rebels were mainstreamed as the strongest political force in Nepal.