Education setting evolved from historical open learning system to traditional classroom set-up to distance learning modality. Teaching-Learning practice is transformed with an evolution of teaching-learning materials. With technological advancement in progressive manner and it’s increasing use in academic setting, distance learning has been the on-demand and on-debate topic in current educational discourse. Comparatively fresh topic in Nepali academic setting, this paper intended to analyze the perception of Nepali students towards online modality in Nepali academic setting. This paper further analyzed the student’s preference towards distance learning in current Nepali academic setting. Research findings were analyzed based on data collected through literature review, interview with students and professor and quantitative data collection through use of google form. Study identified opportunities as revenue generation; continuation of academic career from any part of country; increase learning outcome among jobholders. Study identified challenges as unequal access and quality of internet facilities; affordability of laptops/computers; limited interaction; and frequent disturbances. Seeing the better prospects, study strongly supported the need of shift in academic shift from traditional setting to non-traditional setting in Nepali context to meet the global needs of competitive and quality education.