USAID/Nepal is interested in developing a program to help improve reading outcomes in the early grades of basic education. To inform the program design, a rapid education sector assessment was conducted to better understand past, current, and planned policies, practices, programs, innovations, and initiatives targeted towards early grade reading. This assessment aimed to identify strengths, weaknesses, and key leverage points to improve children’s reading outcomes within the institutional context of Nepal’s education system. The assessment was conducted over a two-month period by a team of researchers and staff from RTI International, including Mr. Joseph DeStefano, Senior Researcher; Dr. Frank Healey, Senior Researcher; Ms. Sharon Loza, Project Management Specialist; and Dr. Wendi Ralaingita, Education Researcher. Significant support was also provided by Dr. Vishnu Karki, Consultant; Dr. Yogendra Yadava, Local Language Expert; Jayanti Subba, Education Specialist, USAID/Nepal; and Mitch Kirby, USAID, Senior Education Advisor. The assessment was carried out by desk study and a two-week field visit from May 7 to May 19, 2012. This report reflects findings from the assessment.