Abstract The examination system in Nepalese higher education plays a pivotal role in evaluating student knowledge and skills. However, it faces numerous challenges, including outdated curricula, exam-centric assessment methods, political interference, and limited technological integration, which hinder its effectiveness and alignment with global educational standards. This review-based article critically examines the existing examination practices in Nepal's higher education system. It focuses on its dual structure of annual and semester systems, emphasizing rote learning over critical thinking. It identifies key challenges such as delays in result publication, lack of standardized assessment criteria, and minimal use of technology. The article proposes reforms such as competency-based assessment models, continuous evaluation, and technological integration to modernize and enhance the examination process. These reforms aim to improve fairness, efficiency, and global competitiveness, fostering Nepal's equitable and innovative education system. Keywords: Examination system, higher education, Nepal, competency-based assessment, educational reform