The survey research entitled “Constraints faced by Kiwi fruit farmers in Ilam Municipality and Sandakpur Rural Municipality of Ilam District” was conducted to access the problem faced by kiwi fruit farmers of Ilam district. For the study, 80 households were selected using simple random sampling method. 40 households each from Ilam Municipality and Sandakpur Rural Municipality were selected. The study shows that the production is in slightly increasing rate in both Ilam Municipality and Sandakpur Rural Municipality. In both Sandakpur and Ilam areas, 25 and 20 percent farmers are producing seedlings in their own nursery respectively and rest of seedlings requirement is met from other nursery. The major problem was wild animal Kala at Ilam and Sandakpur. Unavailability of quality saplings, lack of male and female plant management in field, lack of modified storage and lack of refrigerator van were major constraints of Ilam Municipality. Lack of cemented support system, lack of training and pruning knowledge, lack of modified storage and poor connectivity of road were major constraints of Sandakpur Rural Municipality. Overall constraints of Ilam was technical factors whereas of Sandakpur was disease and pest constraints. Despite of all these constraints, the B:C ratio was 2.67 and 2.53 in Ilam and Sandakpur respectively, which means that the kiwi cultivation is profitable.