In Nepal, ethnical cultural groups are diverse and many of them have their own languages and customs. However they can be geographically categorized according to their habitats. The Sherpas who Tibeto-Burman stock mainly occupy the higher hills of eastern and central Nepal. The Solu Khumbu region, where the world's tallest peak Mt. Everest stands, is inhabited by Sherpas. Generally they are Buddhist but some follow the Bon, the pre Buddhist religion of Tibet, and other religions.

The Sherpa are famed for their valor and mountaineering skills and are professionally involved in many mountain expeditions. Today, Sherpas have joined other occupations as well, like business, administration and politics.

A wide variety of ethnic groups occupy the mid-hills. The Kirats or Limbus and Rais inhabit the east. During the 7th century BC, they established a dynasty in the Kathmandu Valley and ruled it for 1,000 years.

They are not originally Hindus or Buddhists but are ancestor worshippers. However, today, many embrace Hinduism. In the former days, they were warriors and skilled hunters. The population of the Kathmandu Valley consists mostly of Newars.

They speak Nepalbhasa and practice Hinduism and Buddhism. Many families celebrate both Hindu and Buddhist festivals. Their culture also reflects tantrism and animism. Newars are accomplished in commerce and most enterprises in the heart of the Valley are run by them. Historically, they are well known for establishing the three aritistically beautiful cities of Patan, Bhaktapur and Kathmandu.

The inhabitants of the hill flanks surrounding Kathmandu Valley and other parts of Nepal from east to mid west and north to south are mostly Tamangs, nowdays also known as by their family name Lama, who make up one of the largest Tibeto-Burman ethnic groups in the Kingdom of Nepal. In Tibetan language, Tamang means "horse soldier" which gives us an idea about thier past occupation. Today, they farm and work as mountain guides and porters and are second to Sherpa's in mountaineering skill.

Tamangs practice Tibetan Lamaism or the Bon religion and speak their own language very similar to the language of the Sherpas and other hills tribes Gurungs and Thakalis of the north west.

The Magars live in the western and central hills of Nepal. They had their own kingdoms untill the 18th century and were closely associated with the Hindu Indo-Aryans in the west. Much of their cutural practices have been influenced by Chhetris, and today it is difficult to make any difference in the housing, dressing and farming practices of the two. Another ethnic group closely resembling the Magars in many aspects are the Gurungs.

They also live in the western and central hills of the country although further to the east. Of Tibeto-Burman stock and pracitices Tibetan Lamaism and have their own language and also practices shamanism. Apart from being farmers and sherpards, many find employment in the British and Indian armies.

The Khas are the Bahuns (Brahmin) and Chhetris who formed their own kingdoms in the far west. They are Hindus and the language is Nepali, which is the country's official language, was orginally spoken by the Khas. Traditionally, the Bahuns are priests and are better educated than most ethnic groups. In fact, many occupy important government and educational posts in the kingdom today. The Chettris have traditionally been known as warriors. Those living in the higher hills in the far western region lead hard lives because of lack of fertile soil and farming is practiced in the river valleys and on the hill flanks.

The Tharus are one of the original ethnic groups to inhabit the Terai (flat low lands in the southern belt of Nepal) the Majhi, Danuwar, Rajbansi, darai, Satar, and Dhimal also occupy the flat lands. The Tharus have their own unique religion and practice animism. Their culture is especially suited for the hot plains and they are actually immune to malaria. They have Mongoloid features and speak their own language.

There is much migration going on in the country now and the cultural defination of the people by area is difficult. Urban population is increasing by 7% each year and most cultures have intermingled.