As a principle, every government strives for higher socio-economic progress for its citizens and the country. Such efforts are often guides by the underlying principles of better equity in opportunities for upward mobility and improved access to resources. When the socio-economic condition of the vast majority improves, then only the overall level of development rises. Hence, it is important not only to periodically assess what level of progress has been made, but perhaps more importantly, examine which population sub-groups remain more disadvantaged than others so that the social and economic policies and programmes can be better focused and balanced. This paper examines how in Nepal the various population sub-groups, differentiated by ethnic group identification, are associated with the district-level human development. More specifically, it examines the ways, positive or negative, and the extent, whether strongly, moderately or weakly, that ethnic groups are associated with the level of development. An attempt is made to identify the groups that are the most disadvantaged in the development process of the country.