Staphylococcus aureus (S. aureus) is an important pathogen affecting children worldwide. Children are at increased risk of nasal colonization and may be responsible for spreading S. aureus and methicillin-resistant S. aureus (MRSA) to the community settings. This study aimed to determine MRSA nasal colonization among school-going (aged 10–16 years) children of Kathmandu Valley and detect the mecA gene among isolated S. aureus. This study is the first study from Nepal to test the mecA gene from S. aureus from the community (school children). A total of 190 samples were collected from anterior nares, and S. aureus was identified using standard microbiological techniques. An antibiotic susceptibility test was performed, and MRSA screening was done by incorporating the cefoxitin disk in the AST plate. DNA was extracted using the hexadecyltrimethylammonium bromide (CTAB) method, and the mecA gene was detected using PCR. Statistical analysis was carried out using SPSS v16.0. Among the total of 190 children, 85 (44.7%) had nasal S. aureus colonization, and 45 (53%) were positive for MRSA. The highest MRSA colonization (100%) was found in females aged 10–12 years. Age and handshaking habits were associated risk factors of nasal MRSA colonization. Gentamycin, linezolid, and vancomycin were highly effective against MRSA, and erythromycin was the least effective besides cefoxitin and penicillin. Similarly, among 45 MRSA isolates, 41 (91.1%) were mecA gene-positive, and among 40 MSSA isolates, 38 (95%) were mecA gene positive. Our study showed a high prevalence of MRSA among school children. The prevalence of the mecA gene among MRSA isolates was also high. Therefore, the proper screening of MRSA should be done to identify, decolonize carriers and prevent the possible spread of MRSA to students in school and even to the community.