This study explores the cross-border trade between Nepal and Tibet, focusing particularly on the role of traditional merchant groups, such as the Tuladhar traders, in shaping the economic, social, and cultural dynamics of the region. For centuries, these merchants have played a vital role in maintaining the flow of goods between Nepal and Tibet, fostering cultural and religious exchanges, and building robust networks that connect various ethnic and social groups across the Himalayas. Through an analysis of both historical and contemporary trade practices, this research reveals that trade across the Himalayas has been not only an economic exchange but also a conduit for cultural, religious, and social interactions. Traditional merchants played a critical role in sustaining trade networks by leveraging familial ties, religious affiliations, and ethnic relationships to facilitate cross-border communication and commerce. These exchanges, in turn, helped shape the economic structures and cultural landscapes of both Nepal and Tibet.

With the advent of modern globalization and the evolution of Sino-Nepalese trade agreements, the patterns of cross-border trade have undergone significant changes. The opening of new trade routes and the establishment of modern infrastructures have drastically altered the landscape of traditional trade. However, merchant groups continue to play a pivotal role in navigating the political and economic shifts of the region. Despite the modern influences, the deep-rooted social networks and strategies employed by traditional traders remain relevant and adaptable in today’s world. This study also examines how contemporary trade, under frameworks such as China’s Belt and Road Initiative, has redefined the roles and identities of merchants in the context of modern geopolitical and economic environments. The way these merchants balance traditional practices with new economic and political realities is central to understanding the future trajectory of trade in the region. By combining fieldwork and historical document analysis, this research aims to provide a new understanding of cross-border trade in the Himalayan region, emphasizing how traditional and modern business practices coexist and adapt in a rapidly changing global context. The study will contribute to a deeper understanding of the ways in which merchants maintain their social identity and cultural practices while engaging with the broader economic transformations brought about by globalization and political changes. Ultimately, it seeks to highlight how the legacy of traditional trade has influenced contemporary interactions and the ongoing role of merchants in shaping regional relations, both within Nepal and Tibet and in the broader Himalayan region.