Rapid urbanization in Nepal has intensified challenges in public transportation, characterized by fragmented institutions, predominance of informal modes, and infrastructural constraints. This paper presents a comparative analysis of public transport experiences from developing countries, including Bus Rapid Transit (BRT), land-use integration, paratransit reforms, and urban rail systems, to distill lessons relevant for Nepalese cities. Findings highlight the critical importance of strong political commitment, inclusive stakeholder engagement, adaptive governance, and sustained financing in achieving sustainable and equitable transit outcomes. However, Nepal’s unique socio-political, geographic, and fiscal context necessitates a tailored approach rather than direct replication of foreign models. We propose an adaptive incrementalism framework that advocates phased, manageable reforms aligned with strategic vision, enabling gradual formalization of informal transport, institutional capacity building, and integration with urban development policies. The paper further discusses the institutional landscape of Kathmandu Valley, current public transport challenges, and potential pathways for reform led by the Federal Capital City Public Transport Authority (FCCPTA). Emphasizing the role of technology, data-driven planning and participatory governance, the study outlines actionable recommendations to advance sustainable urban mobility in Nepal.