Nepal's carpet sector is one of the main economic contributors that plays a significant role in many areas of the country's well being. However, this sector has seen a major downturn in recent years that is related to resource constraints, environmental problems and management inefficiency. Implementation of pollution prevention strategies has brought significant changes in similar sectors elsewhere in the world. Therefore, Nepal's carpet sector can also benefit from such strategies. This paper is written to provide an overview of the problems that the carpet manufacturing sector of Nepal faces. It also provides recommendations to the government, public and the carpet sector on some of the pollution prevention methods that can be implemented in Nepal to revive the ailing carpet sector. The information presented in this paper will also be useful to similar other industries elsewhere in the world that are directly or indirectly involved in carpet sector.