Nepal established diplomatic relations with the Kingdom of Denmark on 15 December 1967. In 2007, Nepal decided to open a resident Embassy in Denmark at the level of Chargé d"Affaires, ad interim, which was subsequently upgraded to the Ambassadorial level in 2008. Relations between the two countries have consistently remained cordial and friendly.

There have been several high-level state visits between Nepal and Denmark. Notably, His Majesty King Frederik André Henrik Christian, then Crown Prince and now the reigning monarch of Denmark, visited Nepal in 2015. Additionally, former Prime Ministers of Nepal, the Right Honourable Mr. Madhav Kumar Nepal and the Right Honourable Mr. Pushpa Kamal Dahal, have also conducted official visits to Denmark and other Nordic countries.

Nepal holds in high regard the development cooperation extended by the Kingdom of Denmark, as well as by the Kingdom of Norway, the Kingdom of Sweden, and the Republic of Finland. Nepal looks forward to further strengthening its bilateral diplomatic ties with all Nordic and Baltic nations.

The Ambassador of Nepal to the Kingdom of Denmark is concurrently accredited as a non-resident Ambassador to Finland, Norway, Sweden, Lithuania, Latvia, Estonia, and Iceland.