Racism means undemocratic and un-equal corrupt act or behave in the terms of moral, mental, employment, social, cultural, religious, political, Sex, Race, Nationality and human rights. Why and How Racism implements and applies in Nepal: In Nepali constitution, Nepal considers Only Hindu kingdom is racism. In Nepali Army, employ only Hindu people and give only high army rank to Bahuns and Chettris is racism. In education sector, to teach only Saskrit language and suppress other language is racism. Provide 98% educational vacancies and scholarship to Bahuns and Chettri is Racism. In employment, employ 98% Bahuns and Chettri people and left behind rest tribal Nepalese people is racism. In politics, giving high vacancy and leadership role to Bahuns and Chettris, and rest keep in parties as workers people is racism. In social, cultural and religion, Bahuns and Chettri create Caste and Race systems, and they convert Nepali democratic system into Caste Systems that is racism. Racist behavior and mentality, Bahuns and Chettri thinks that they are only superior people where there is No single point to claim as them superior race. That is bad mentality of racist. Therefore, RACISM IS MAJOR KEY PROBLEM of Nepal. It has deep dark root problem inside Bahun and Chettri people and their mentality, social, cultural, religion, employment and political practices. Conclusion: Racism in Nepal must be end before any new Nepali democracy, Peace, Human rights and New political change.