Abstract Introduction : Nepal is a country in South‐east Asia with high suicide. There is ongoing trend of emerging research on suicide from Nepal but there is lack of validated scale in measuring literacy or stigma. In the view of poor media reporting and large treatment gap, this study was conducted. All previous validation studies were done in non‐Hindu populations. Methods : A cross‐sectional study was planned where the short forms of Nepalese literacy of suicide scale (LOSS‐SF‐Nep) and Stigma of Suicide Scale (SOSS‐SF‐Nep) were validated using standard procedure at a medical college in southern Nepal. Medical and nursing students of all batches were approached offline after successful pretesting. The psychometric properties of the scales were tested, and the statuses of literacy and stigma were assessed. Patient Health Questionnaire‐9 and General Anxiety Disorder Scale‐7 were used for revealing depression and generalized anxiety. Results : Three hundred and nineteen Nepalese students participated and most of them were males, belonged to nuclear family, upper‐middle socioeconomic status and represented 46 out of 77 districts of Nepal. The mean score of LOSS‐SF‐Nep was 6.36 ± 1.92 and literacy ranged from 37.9% to 89.7%. The deeper exposure to suicidal patients was associated with better literacy. Factor analysis of SOSS‐SF‐Nep revealed three subscales: stigmatization, isolation/depression, and normalization/glorification and had acceptable psychometric properties. Gender, occupation of head of the family, region and years of education, using mental health services, and depression were associated with variable literacy or stigma. Conclusion : Literacy and stigma scales were validated in Nepali, and SOSS factor structures were revealed with modified descriptors. The literacy and stigma levels in medical students were calculated for the first time in Nepal and Hindu majority population.