The Large sky Area Multi-Object Fiber Spectroscopic Telescope (LAMOST) medium-resolution spectral survey of Galactic Nebulae (MRS-N) has conducted for three years since Sep. 2018 and observed more than 190 thousands nebular spectra and 20 thousands stellar spectra. However, there is not yet a data processing pipeline for nebular data. To significantly improve the accuracy of nebulae classification and their physical parameters, we developed the MRS-N Pipeline. This article presented in detail each data processing step of the MRS-N Pipeline, such as removing cosmic rays, merging single exposure, fitting sky light emission lines, subtracting skylight, wavelength recalibration, measuring nebular parameters, creating catalogs and packing spectra. Finally, a description of the data products, including nebular spectra files and parameter catalogs, is provided.