It lies on the Terai plains near the southern border with Bahraich district in Uttar Pradesh, India.

Former Village Development Committee: Udayapur, Bhawaniyapur, Piprahawa, Jaispur, Paraspur, Indrapur, Khaskarkado, Basudevpur, Manikapur and Puraina were added to territory in order to make it Sub metropolitan city on 2071 Paush 28 and later Puraini was also added in list on 2072 Paush 21.

In terms of ethnicity/caste, 28.2% were Musalman, 10.7% Chhetri, 8.6% Hill Brahmin, 4.0% Thakuri, 3.7% Magar, 3.5% Yadav, 3.2% Tharu, 3.0% Newar, 3.0% Kathabaniyan and 32.1% others.

Hinduism and Buddhism are two major religions in the city, with Hindus comprising the larger percentage of the population.

It operated flights to Kathmandu and to airports in less-developed western districts such as Humla, Dolpa, Jumla, Mugu and Rukum.

Mahendra Multiple Campus is the largest public higher-level institution in the district, and is affiliated to Tribhuvan University.

The city recently inaugurated Lumbini Technological University in July 2022, which provides promising future regarding the education sector in the area.

Some hotels of the city feature in the atmospheric travel memoir A Glimpse of Eternal Snows[9][10] by Jane Wilson-Howarth.

Established in 2004, on October 12th, the radio station boasts a long and rich history of providing informative, educational, and entertaining programs to the people of Nepalgunj and surrounding areas.