Lichens are some of the ubiquitously distributed symbionts with a circumpolar distribution. The Himalayan habitats are lichenologically among the most researched region in Asia. European and Japanese researchers initiated the lichenological research in the Nepal Himalayas, which was later carried out predominantly by Indian lichenologists. The cumulative diversity of lichens in Nepal constitutes 882 species belonging to 186 genera and 61 families. Though the lichenological studies in Nepal largely constitute taxonomic and diversity enumeration studies, works in other applied fields have started in the last decade. The present review refers to the various taxonomical studies on lichens of Nepal by various researchers. The review also investigates the works done in the field of biomonitoring and bioprospection. The review conclusively discusses the prospects of lichen research in the country regarding the rich lichen biodiversity recorded so far and the various developments in the field of modern lichenology. Keywords: Biomonitoring, Bioprospection, Diversity, Lichen, Lichen taxonomy, Nepal.