Social exclusion is directly interlinked with caste discrimination and untouchability which has resulted in the educational exclusion. Thus without elimination of all forms of caste based discrimination in the societies, it is not possible to apply and achieve the inclusive education in Nepal. There is functional relationship among society, education and social transformation. Progressive function of education focuses on the transformation of society from its status quo through abolishing mal-cultures and malpractices. As Nepal is in the transitional phase of state restructuring and transformation, it is high time to think seriously on the educational issues of Dalit communities by addressing them through categorizing their issues into two broad perspectives i.e. practical and strategic issues.