This study has been commissioned to identify key actors, their incentives, and interests in promoting and obstructing fiscal federalism, and more importantly, their roles to strengthen NNRFC’s capacity to implement fiscal federalism. There is widespread consensus among observers that, notwithstanding its infancy, the effectiveness of the Commission has been compromised and it has been hindered from executing its constitutional mandate. In ensuring that state resources are shared justly to benefit the entire population and that provincial and local governments can effectively carry out their mandates, better functioning of NNRFC, and ultimately for the continuation of the federal project as envisaged by the Constitution of Nepal – this study recommendations to : review, complete and revise fiscal federalism related legal frameworks; promote fiscal federalism through creating demand for NNRFC’s legitimacy; and establish the NNRFC as knowledge leader in fiscal federalism by investing in in-house technical expertise.