Global rice production has revealed signs that it may no longer be stable in the future. Along with the increasing population, the resources for rice production are declining. Moreover, water needs labor force for transplanting rice has become insufficient because laborers are shifting from agriculture to industry, public works, and overseas job. In view of this, the Direct-seeded rice has been put forward as an appropriate substitute to traditional puddled-transplanted rice with efficiency to save water, reduced labor requirement, mitigation of green-house gas emission, and adaptability to climatic risks. It has potentiality to increase the productivity of the subsequent non-rice crop i.e. wheat particularly in Rice-Wheat cropping system, the dominant cropping system in South Asia. However, the DSR suffers from several constraints, particularly high weed infestation. The system has been proved farmers-friendly but requires more enhancements in technological approach to realize higher benefits. In recent years, strategies have been made in promoting the DSR technology by different organizations. Scientists are working in developing suitable varieties and agronomic packages for encouraging the DSR. This review describes the resource and environmental constraints of traditional puddled-transplanted rice cultivation, analyzes the advantages and constraints of DSR, and solutions to problems of DSR in Nepal.