Municipalities in Nepal have always found hard to manage the Municipal waste. They are facing the challenges in sustainable waste management. Municipal wastes is increasing as more people generating their income and the sustainability of landfill and dumping sites are both economically and environmentally questioned. In Municipalities of Nepal, some hundreds of tones of municipal wastes are produced per day, among which 60-70% are organic waste which can be either composted or can be used to produce biogas. Thus in search of alternative treatment methods of these generated wastes composting is been looked as the alternatives by many. But it is equally important to assess the sustainability of the already running composting projects that are treating municipal wastes. It is quite obvious that this huge urban waste problem could be reduced with great gain for all but the problem still persists. About 20% consist of recyclable inorganic materials such as paper, plastic and metal and about 10% is inert materials. Thus composting and recycling can be an efficient ways to reduce the amount of waste that needs to be disposed as well as the cost of waste management. The potential for recycling the waste generated in Nepalese municipalities is high because most of the waste is recyclable and technologies for recycling most of the waste is readily available in the country. Furthermore, there is a market for most recyclable materials because of the demand created by the formal and informal private sector involved in this sector (CBS, 2008; CBS, 2011, SWMRC, 2008).