In Nepal, little emphasis has been placed on the need to link healthcare-seeking behavior (HCSB) with health policy. The purpose of this study is to identify the HCSB of 405 households that were randomly selected from 28 communities in a hilly region of central Nepal. In assessing HCSB, we found that some form of illness strikes about 50% of households each year. When rural Nepalese are moderately or severely ill, they seek healthcare from traditional healers first, before visiting other health workers. Mild illnesses are treated at home. To improve the health of the rural population, health planners should recognize these realities and incorporate them into the development of health policies.