The purpose of this report is to provide data on children’s early grade reading skills as measured by the EGRA. In addition, we report information from an accompanying interview with children, the teacher passage, and select data from the EMES-TOS. The report focuses on these key research questions (RQs): 1. To what extent are students in Grades 2 and 3 learning to read in Nepali? 2. What reading-related skills are students in Grades 2 and 3 acquiring? 3. What factors—both in-school and out-of-school—help explain student performance on the EGRA? 4. How well do teachers understand a written explanation of a proposed Early Grade Reading Program? This analysis is guided through the prism of the core research questions that were developed and agreed upon in consultation with the Ministry of Education (MOE) and its stakeholders. This report presents data that address each of the research questions and draws conclusions based on those data. The report also identifies additional areas for further research or exploration that could be useful for decision makers. To get started, results from the first research questions are presented, providing an overview of the core findings from the EGRA. A brief description of the EGRA and the survey administration follows, as well as some descriptive characteristics of the study. After this, an in-depth analysis for each of the remaining three key research questions is presented. The report finishes with conclusions and recommendations.