Nepal has witnessed a humanitarian crisis since the Maoist conflict began ten years ago. The plight of internally displaced persons (IDPs) in Nepal has received little international attention despite being rated one of the worst displacement scenarios in the world. An estimated 200,000 people have been displaced as a result of the conflict, with the far-western districts of Nepal being the worst affected. Internal displacement has stretched the carrying capacity of several cities with adverse physical and mental health consequences for the displaced. Vulnerable women and children have been the worst affected. The government has adopted a discriminatory approach and failed to fulfil its obligations towards IDPs. Non-governmental organisations and international agencies have provided inadequate services to IDPs in their programmes. Tackling the issues of IDPs requires co-operation between government and development agencies: acknowledging the burden of the problem of IDPs, adequate registration and needs assessment, along with health and nutritional surveys, and development of short-term emergency relief packages and long-term programmes for their assistance.