The present study describes and assesses the collective marketing efforts initiated in the case of Nepalese handicraft products over the last decade. Detailed analyses of the functioning of various producers and marketing organizations reveal that these efforts have helped large numbers of small producers scattered throughout different parts of the country by ensuring markets and fair prices and, as a result, resulting in increasing their production and income. Introduction of the principle of fair trade, with the formation of the Fair Trade Group, Nepal, has given additional protection and benefits to small producers.The study also reveals that there are some basic problems, relating to raw materials, technology, and competition, in the case of several handicraft products, and that the collective marketing organizations can help to resolve them only to a limited extent. Within the collective marketing set-up, there are problems that are both organizational and which relate to the commitment of producers to their organizations. The study concludes that the collective marketing organizations and the fair trade movement need to be strengthened to ensure fair returns to the producers and bigger markets for handicraft products.