is a municipality of Ilam District, which is in the hilly region of Mechi zone, in the Eastern Development Region of Nepal. Ilam also acts as the headquarters of Ilam District and Mechi zone. Geographically it lies in the hill region which is mostly known as Mahabharata range. It is also one of the important town in Mechi zone and one of the major place in Nepal for tea-production. It is famous for natural scenery and landscapes, tea production, and diverse agricultural economy. Ilam municipality is sub-divided in 9 different wards, the major governmental and district office lies in ward number 1 and ward number 2. Ilam also is a major hub for transportation and communication for VDC that lies in the upper part of the discrict.


Ilam Bazaar is located about 700 km east of Kathmandu. Regular buses are available from New Buspark, Koteswor and Kalanki of Kathmandu which takes to Ilam after a bus ride of about 18hours. An airport is under construction at Sukilumba Danda. A new buspark is being constructed at Sera.

Ilam view tower located in Panitanki, Gadi is a good place for the majestic views of hills, tea gardens, and some part of Ilam bazar,you can also see some parts of Jhapa on a clear day. The clock tower of Ilam also known as P.P. Tower is located in Ilam chowk bazar.


Tea production in Ilam  started as early as 1863, when the Chinese government offered then Prime Minister Jung Bahadur Rana tea saplings that were then planted in Ilam. In 1868, the Ilam tea factory was established, and tea plantations covered over 135 acres of land. In 2010, the tea factory was privatized, and is currently not under operation. However, tea production continues in Ilam in other forms.

In 2010, the total tea production of Nepal is 16.23 million kilograms per annum; a majority of this amount is produced in Ilam itself.


New Hotels are being opened in Ilam for tourism. , Alan (Milk), Alainchi (Cardamom), Aduwa (Ginger), Amriso (Broom Grass), and Akabare khursani (Round Chillies),etc. although tea, bamboo, flowers and silk are also produced in Ilam.

Ilam bazaar has got haat on Sundays and Thursdays every week.


It is cold and freezing in the winter,mild warm in summer and fogg in the monsoon season. Many tourists come to Ilam for sight seeing of the natural beauty.


This region is famous for the tea plantation in Nepal, perhaps in the world as Ilam Tea. Though the tea plantation was practised in Ilam about 138 years ago for the first time, the tea plantation revolution has started 10/15 years before only.
Ilam Valley Tea, the finest quality orthodox tea, is produced by one of the most modern factory Himalayan Shangri-la Tea Producers (p) Ltd., a subsidiary of New Ilam Tea Industries (P) Ltd., one of the pioneers of high quality orthodox tea packers & exporters in Nepal with over 30 years of experience in the tea industry.
The factory was established in the year 1999 and is situated at Nepaltar on the top of Mahabharat range, 18km. inside on the highway to Taplejung from Ilam town. It is a central factory and the green leaves are collected from the small scale farmers in the region where, more than six hundred small tea growers are involved on a day to day basis.
Since, the ecology, climate altitude and the virgin fertile soil of this region is very suitable for high quality orthodox tea and the green leaves are plucked from the very young and healthy bushes at an altitude of 5000ft. Shangri-la Tea producers (p) Ltd., producers the best quality Ilam Valley Tea that gives mellow, pure natural flavour and fascinating character.
Ilam, the divinely bestowed upon the nature is situated in the far eastern region of the beautiful HimalayanKingdom, Nepal. This picturesque region lies at the bottom of Mt. Kanchanjunga, the third highest peak of the world and is fully covered by structure, virgin fertile soil, diverse climate and its own arts and unique style. The people are friendly and hospitable.






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