Choice of contraceptive methods is an important element in the promotion of family planning and women's reproductive health. This study aims to investigate the factors that influence women's decisions in selecting contraceptive methods in Nepal. Women's socioeconomic, cultural, demographic characteristics and media exposure as well as programmatic factors were undertaken as the explanatory variables. The data was taken taken from NDHS, 2001, for the study. Cross tabulation was applied to assess the bivariate relationship and multinomial logit model was carried out to examine the direct effect of independent variables on methods choice. The study reveals that inter-spousal communication and family planning workers' visits a have positive influence in determining modern temporary contraceptive methods. Age was positively significant for all the modern methods. However, as age increases, so does the tendency to adopt permanent methods of contraception. Rural residence and Hindu religion have significant negative effects on acceptacne of contraceptive methods. However, these factors show a positive influence on sterilization. Mass media appeared to be effective on use of contraceptive methods over nonuse. Women with better educational and occupational status are more likely to use temporary methods. Overall the findings indicate that illiterate women and women who reside in rural areas are less likely to use contraceptive methods. But, women who have better educational and occupational status tend to discuss about fertility regulation and family planning, which leads to more use of contraceptive practices. Therefore, it is suggested that family planning program intervention is required to improve the educational status of women by encouraging couples to discuss family planning and by increasing access to media exposure, which leads women to use contraceptive methods. As the Family Planing Worker's Visitation Program appeared to be an effective factor in contraceptive practices, it is recommended that this program be continued to a greater extent. Intervention is required that pays attention to illiterate, rural, adolescent and young women who seem to be the most vulnerable for high fertility. An integrated approach of public and private partnership can help in achieving the family planning goal in Nepal.