There are reports that children ages 6-17 and some younger than age 5 are working under conditions of forced labor to produce bricks in Nepal. According to available information from an NGO report, two-thirds of the children are male. Brick kilns are concentrated in the Kathmandu Valley and Terai, and operate seasonally between October and June. According to the most recently available NGO data, between 30,000 and 60,000 children work in Nepal's brick kilns, of which up to 39 percent are working as bonded labor. Migrant families, members of certain castes – a socially disadvantaged class in Nepal – and ethnic minorities, such as Dalit, Janajati, and Madeshi, are particularly vulnerable to bonded labor in brick kilns. Most of the children are from Nepal, however some are from West Bengal and Uttar Pradesh, India. Many families take advance loans from brick kiln employers or brokers with a commitment to produce a specified quantity of bricks, and become bonded laborers. Their children are bound by their parents' debt and work alongside their families making bricks. The bonded families live at the kiln worksites, without access to safe water or sanitation facilities, and are prohibited from leaving until the debts are paid in full. Some bonded children are forced to work 12 hours a day, and receive little, if any, payment after wage deductions to repay the family debt. Some children are penalized by their employers with verbal or physical abuse.

There are reports that children are forced to produce carpets in Nepal. Children age 14 and older are found in registered carpet factories, while children younger than 14 are found in informal, unregistered carpet factories. Carpet factories are concentrated in the Kathmandu Valley. Some children work alone or with their families as bonded laborers in the factories. Most children do not receive payment for their work. Some children work to pay off advance payments for their labor made by the employer to the recruiter or their families. These children live in the factory or nearby in accommodations provided by the employer. The children are not free to leave until the debt has been repaid. Many of the children are forced to work long hours and overtime, up to 18 hours per day; many cannot leave the factory even after they have completed their long workday. Such children are punished by employers for refusing to work, missing production quotas, falling asleep, or making mistakes.

There are reports that children, mostly boys ages 7-17, are forced to produce embellished textiles in Nepal. The factories are spread across the Kathmandu Valley and are concentrated in Thankot. The child workers are mainly recruited from Sarlahi, Mohattari, and Dhanusha Districts. Based on a research report, close to 7,500 children are working under forced labor conditions in the sector. Factory owners often recruit certain boys to work on one- or two-year contracts, paying an advance to their parents for the boys' labor. The boys are forced to work long hours without pay. At the end of the contract, the factory owner offers another advance payment to the parents, and the boys then return to work for the factory. During the subsequent contract, the children receive little or no wages after the initial advance payment as wages are deducted to repay the advance, and accommodation and food expenses are also deducted. These children live at the worksite, and the factories are often locked, preventing the children from leaving.

There are reports that children as young as age five are forced to quarry stones in Nepal. An NGO report and the media indicate that these children work as bonded laborers, often working alongside their parents and other family members in quarries and riverbeds across the country. Families borrow money and are paid too little to escape their debt, remaining in debt bondage. Some children, usually with their families, live at the worksite where they are watched by guards and forbidden from leaving. The children are often forced to perform hazardous work, including carrying heavy loads. Employers threaten to withhold food from the workers, including children. Some children experience physical violence by their employers.