The assertion of (territorial) nationalism by Nepal has serious implications on its bilateral relationship with India. Once dominant, the singular narrative of the upper-caste Hindu Parbatiya nationalism is increasingly encountering competing narratives emerging from the marginalised Janajatis and the Madhesis of Nepal. Accordingly, several nationality sentiments that were sidelined earlier have now become salient. While the India factor in these competing perspectives of nationalism discourses in Nepal appears to be subtle (but important), the growing territorial dimensions to it invariably locates India in a prominent position. This article investigates the implications of the changing dynamics of Nepal’s nationalism on its bilateral relationship with India. Reasoning through the internal dynamics of nationalism discourses in Nepal, the article offers a critical analysis of the territorial disputes between India and Nepal, and its implications on nationalism in Nepal and on the bilateral relationships between India and Nepal