Nepal held Parliamentary Elections in November and December 2017 under the newly implemented constitution in 2015. The elections were historic as the Left alliance formed with the merger of two rivals’ parties namely Communist Party of Nepal (Maoist) and Communist Party of Nepal (Unified Marxist, Leninist) won the biggest political mandate. The present paper provides a detailed overview of the elections and their implications on Nepal’s ties with its neighbors, especially with India and China. The paper argues that irrespective of the ideological instances held by the Left Alliance, their victory should ensure a fine a balance between India and China. Political stability along with balance with its neighbors will be helpful in Nepal’s progress and prosperity