The study was carried out in Tokha Municipality of Kathmandu district from April, 2020 to June, 2020 to map the value chain of potatoes and assess the productivity and profitability within the existing value chain. Altogether 50 potato producers were selected along with 5 aggregators, 5 wholesalers, 5 retailers and 10 consumers using the random purposive sampling technique. The primary data were collected through field survey, focus group discussion and key informant interviews and secondary data were obtained from various published documents. The data obtained were analyzed in MS-Excel and SPSS. The average area under potato cultivation was 2.94 ropani with a productivity of 6.96 quintals per ropani, which is slightly lower than national-wise productivity (7.48 quintals per ropani). The cost of production per ropani was NRs. 13397 while cost incurred by traders per quintal (aggregators NRs. 3470, traders NRs. 4250 and wholesalers NRs. 3571). The average gross return was NRs. 28182.28 per ropani. The producers B:C ratio was 2.13 while aggregators (3.80), retailers (3.20) and wholesalers (1.99) with the net margin NRs. 7989.58 per ropani. The producer’s share on consumer’s price was 72.43% and the marketing margin for aggregators, retailers, and wholesalers was NRs.570.91, NRs.800, and NRs.587.44 respectively. The problems in quality assurance among traders and higher prices among the consumers were found. Thus, potato being an important cash crop, the decision¬-makers should take up initiatives for strengthening the potato value chain by establishing cold storage facilities in production belts and improving subsidized credit services to value chain actors.