Nepal as an agricultural country- having seemingly large domination of cultivation of paddy-, can be bountifully benefitted through rice husks as it could prove to be a valuable energy resource for industries. Rice husk, which accounts for 20% weight of rice, comes as by-product from rice milling process; and it is identified as an important and potential energy resource. Generally, a large amount of rice husk is dumped as waste and that result in waste disposal problem and emitting methane. Moreover, the low density of rice husk can easily result in causing air-borne breathing problems, if inhaled. Nonetheless, rice husk can be converted into a useful form of energy to meet the thermal and mechanical energy requirement for the mills themselves, if endeavored. This helps to minimize the waste problem in addition to healing accruing energy crisis through converting rice husk to a potentially renewable energy resource. This paper charts out the prospective utilization of rice husk as a potential energy resource in Nepal. The 2011 CBS data as that 15, 32,000 hectares of rice cultivation, 50, 72,000 metric tons of paddy production and 10,14,400 metric tons of annual rice husk production shows the potential of generation of energy from rice husk in Nepal. The need of capitalizing this energy potential into renewable energy and electricity generation is more pressing at this time given the country has huge power deficit.