India–Nepal relations are frequently portrayed as exceptional due to deep civilizational, religious, linguistic, and socio-cultural ties that long predate the modern nation-state. Indian foreign policy discourse consistently frames these shared cultural foundations as the core of its cultural diplomacy and soft-power engagement with Nepal. Yet, recurrent political tensions, sovereignty-centric nationalism in Nepal, and Nepal’s increasing diversification of external partnerships complicate this narrative. This paper critically examines whether India’s cultural diplomacy towards Nepal functions as a substantive instrument of influence or remains largely rhetorical. Drawing on a qualitative and interpretive methodology, the study analyzes India’s principal cultural diplomacy instruments—including educational exchanges, cultural institutions, heritage and pilgrimage initiatives, symbolic festivals, and people-to-people ties—against Nepalese perceptions shaped by historical memory and political experience. The paper argues that while India’s cultural diplomacy is institutionally extensive and historically grounded, its effectiveness is frequently undermined by credibility deficits arising from policy incoherence and perceived asymmetry. The findings contribute to debates on soft power and public diplomacy in asymmetric regional relationships and suggest that cultural proximity alone does not guarantee diplomatic influence without sustained reciprocity, local ownership, and alignment between cultural messaging and foreign policy practice.