Nepal lost to Scotland by two runs in the match held at TU Cricket ground under the ICC Men's Cricket World Cup League 2 on Tuesday.
Despite half centuries from vice captain Dipendra Singh Airee and Gulshan Jha, Nepal fell short by just two runs in the match decided by the DLS method, after 50 overs could be completed in the second innings due to rain.
Batting first after winning the toss, Scotland scored 243 runs at the loss of eight wickets in allotted 50 overs.
Opener George Munsey scored 75 runs off 62 balls followed by Finlay McCreath and Micheal English who scored 35 and 34 runs respectively.
Leg Spinner Sandeep Lamichhane was the pick of the Nepali bowlers, taking four wickets in 10 overs and limiting the visitors to a par score.
Karan KC and Nandan Yadav chipped in with two wickets each.
However, Nepali bowlers gave away too many extra runs, at 16 including 11 wides.
As rain affected the second innings, Nepal were given a revised target of 221 runs in 39 overs.
Gulshan Jha top-scored for Nepal with 61 runs off 35 balls, including five sixes and two fours.
Airee scored 55 runs off 49 balls while captain Rohit Paudel contributed 32 runs off 46 balls, before being bowled out by eventual player-of-the-match Brad Currie. He took three wickets in eight overs, giving away 43 runs.
Nepal will now face the United States of America in the match to be held on Thursday, May 14.
In the points table including eight teams, Nepal languishes at the 7th position, with 18 points in 25 matches.
Nepal have won eight matches and lost 15 so far.
The USA tops the table with 36 points in 24 matches.