Nepal was the 7th country in the world to recognise the independence of Bangladesh on January 16, 1972. The two countries established formal diplomatic ties on April 8, 1972. The two countries are also the founding members of the South Asian Association for Regional Cooperation (SAARC) and member of the United Nations, contributing to UN Peace Keeping Missions worldwide and other regional frameworks.

With a great zeal to enhance the bilateral cooperation, Bangladesh opened its full-fledged Embassy in Kathmandu on October 3, 1971, and Nepal opened its Embassy in Dhaka in 1976. From the early days, Nepal and Bangladesh have maintained cordial relations and extended support in regional, multilateral, and sub-regional cooperation. For instance, Nepal and Bangladesh are active members of the Bay of Bengal Initiative for Multi-Sectoral Technical Cooperation (BIMSTEC), and Bangladesh, Bhutan, India, Nepal Initiative (BBIN)- a sub-regional grouping body in the region.