Returns to investment in wheat breeding research in Nepal were estimated for two periods: (1) the Green Revolution period (1960-1990), when modern semidwarf wheat varieties first appeared and spread throughout the country, and (2) the post-Green Revolution period (after 1990), when first-generation modern varieties will be replaced by newer materials. Major benefits of the Nepalese wheat breeding program have included maintenance of disease resistance and faster dissemination of exotic germplasm. Attractive rates of return to investment in wheat breeding have been due in part to Nepal's ability to capture spillover benefits from neighboring countries and from international agricultural research centers.