The 1950 India-Nepal Treaty of Peace and Friendship (official name Treaty of Peace and Friendship Between The Government of India and The Government of Nepal) is a bilateral treaty between Nepal and India establishing a close strategic relationship between the two South Asian neighbors. The need for treaties has increased as the world‟s interdependence has intensified. Continuing, technological innovation, economic globalization and the growth of transnationalism has resulted in an enormous increase in the frequency and rapidity of global interaction. Such challenges require both nationa l and international responses. Where a problem cannot be adequately addressed by a country acting alone acting cooperatively at the international level becomes essential for a country to protect its own interests.The purpose of treaties is to address the i nterests and concerns of the signatories in a given time and context and if they fall short to address the dynamic international policies then the obvious choice is to upgrade or amend them. The interests and concerns of a particular country is defined and determined by its political elite in a particular time, space and context. This is true in the context of the Treaty of Peace and Friendship signed in 1950 between India and Nepal to take care of their mutual interests within a particular regional context . The article examines the relevance of the treaty and prospects of Indo - Nepal relations in the changing enternational scenario. It argues that Nepal has benefitted much more than India from the treaty. However, considering changes in the strategic equati ons in the region, India - Nepal bilateral relations must be remodeled into a strategic partnerrship that seeks to provide security, modernization and prosperity.