Precision agriculture is a management system based on information and technology which analyses the spatial and temporal variability within the field and addresses them systematically for optimizing productivity, profitability, and environmental sustainability. It is an emerging concept of agriculture that implies a precise application of inputs at the right place, at the right time, and in the right amount to minimize the production cost, to boost profitability and reduce risks. The three main elements of precision agriculture are data and information, technology, and decision support systems. This system of management is known as ‘Site-specific management’ which makes use of technologies like global positioning system, global information system, remote sensors, yield monitors, guidance technology, variable-rate technology, hardware, and software. Agriculture is the mainstay of Nepal but still is not proficient enough to appease the daily consumption needs. The ongoing system of farming practices in Nepal is deemed insufficient to explore the available resources in its optimum potential. Many cultivable lands in the country are still a virgin, and many indigenous crop varieties have remained unexplored in their wilderness that is rich in biodiversity. These possibilities embark great room for increasing agricultural productivity through the precision farming system if adopted the technology on a large scale within the country. The national economy can be flustered and the environment can also be conserved using precision agriculture. It can address all agricultural and environmental issues. It is a technically sophisticated system and requires great technical knowledge for successful adoption and implementation. This study examines the history, global scenario, scope of precision agriculture, and its importance, opportunities, threats, and challenges in Nepal.