The Republic of Nepal and the Republic of Malta first established diplomatic relations in 1983, with Malta creating a Honorary Consulate in Kathmandu. The relationship between the two countries have been grounded in shared democratic values and commitment to sustainable development. Over the years, both countries have explored new ways to boost diplomatic, cultural and economic cooperation between them, starting with Malta's establishment of a High Comission for Nepal at its embassy in New Delhi in 2007. Other bodies created to further enhance that cooperation include:

• The Malta-Nepal Parliamentary Friendship Group, created in 2021 to establish a institutional relationship between the Parliaments of both countries, as well as promoting the exchange of visits, experience and views.
• The Nepal-Malta Chamber of Commerce, also created in 2021 with the purpose of strengthening the relationship between both countries in light of the increasing amount of Nepalis citizens joining the Maltese labour market in the health care, construction and service sectors.

Economically, both countries are an attractive tourist spot, displaying majestic mountains for Nepal and scenic coastlines for Malta. Aditionally, there is a great opportunity for Foreign Direct Investment and technology transfer in the pharmaceutical, financial and information sectors. Since 1995, FDI from the Mediterranean island nation to Nepal has already reached USD 1094.60 million.