In many developing countries, where rabies is prevalent among dog populations, humans are at risk of contracting the disease. Recent reports from Nepal suggest that around 30,000 cases of pet and more than 100 human rabies cases occur each year, with the highest risk being in the Terai, although these numbers may be underestimated. Knowledge and practices related to rabies prevention are crucial in combating the disease. However, there is not enough data on the understanding and preventive measures of rabies among the local population in Nepal. Therefore, this study aimed to evaluate the knowledge and practices regarding rabies prevention among the people of Bharatpur-12, Chitwan, Nepal. The study, conducted in February 2022, involved a cross-sectional survey of 271 respondents selected through systematic random sampling. A semi-structured questionnaire was used for one-on-one interviews. Among the surveyed respondents, a significant proportion (81.50%; n = 221/271) correctly understood rabies is zoonotic disease. Furthermore, 73.10% (n = 198/271) could correctly identify the animals susceptible to rabies, while 39.9% (n = 108/271) knew the causative agent. Additionally, 46.5% accurately listed the modes of transmission, and a majority (86.70%; n = 235/271) recognized the signs and symptoms of rabies in animals and humans. Overall, 42.06% (n = 114/271) of the respondents demonstrated satisfactory knowledge. Out of the 271 respondents, 22.9% (n = 62) owned pets, and 39.11% (n = 106) reported incidents of animal bites within their families, with dog bites being the most commonly mentioned (92.46%; n = 98/106). The majority (81.14%; n = 86/106) sought treatment on the same day as the incident occurred. About half of them (50%; n = 53/106) cleaned the wound with soap and water, while a small percentage (5.66%; n = 6/106) relied on traditional medicine as immediate first aid after an animal bite. The level of knowledge was found to be associated with gender (p = 0.04), educational status (p = 0.05), and family monthly income (p = 0.007). These findings highlight the importance of educating the community in Nepal about rabies control and prevention measures and underscore the need for targeted educational interventions to improve rabies awareness and the potential of effective awareness campaigns to save lives. Raising awareness about health-seeking behavior and community members’ role in controlling, preventing, and eliminating rabies is crucial.