She Phoksundo (Nepali: शे फोक्सुण्डो गाउँपालिका) is a rural municipality located in Dolpa District of Karnali Province of Nepal.

Ministry of Federal Affairs and General Administration (MoFAGA) replaced all old VDCs and Municipalities into 753 new local level bodies.

Saldang, Bhijer, and Phoksundo Village development committees (VDCs) were incorporated to form this Gaunpalika.

At the time of the 2011 Nepal census, 56.7% of the population in She Phoksundo Rural Municipality spoke Sherpa, 23.3% Kham, 17.6% Gurung, 1.4% Nepali and 0.6% Tamang as their first language; 0.4% spoke other languages.

In terms of ethnicity/caste, 76.7% were Dolpo, 17.8% Gurung, 2.9% Tamang, 0.9% Bhote, 0.4% Chhetri, 0.4% Magar and 0.9% others.