Caterpillar fungus aka "Himalayan Viagra" is a major livelihood source (>70% of income) for people living across Tibetan plateau. It is naturally found in highland pastures in the alpine region of Himalayas. The market value of the fungus is three times the market price of gold making it multi million industry in mountain region. The sky rocketing price of the fungus led to over harvesting and declining resource base in recent years. As a result, sustainable management of this fungus in the highland pastures of Nepal has become an emerging issue. In most of the pasture, the fungus collection is managed by park authorities, local community groups (as a management committee) and sometimes jointly. This study has taken case of Pupal pasture where the fungus is managed by the local community groups i.e. Magars – an indigenous ethnic group in the area. Nepal’s Department of National parks and Wildlife Conservation issued a management directive to address this issue in 2016. Similarly, in 2016 the local management committee launched a new strategy dubbed as ‘one home, one security’ (Ek Ghar Ek Surakshya) in the study area. The strategy entails that each local household sends one representative in the pasture before allowing people residing outside the local area (Maikot) in order to harvest caterpillar fungus. The rationale for ‘one home one security’ is to stop illegal pickings of caterpillar fungus by outside harvesters; and also initiate caterpillar fungus collection by local households before allowing access to general public. This study aims to examine the management practices of the caterpillar fungus by the indigenous communities and implementation challenges of the national management directives in remote landscapes (Maikot of East Rukum) of Nepal. The research follows a case study approach by purposely selecting a site for detailed study. Pupal pasture in East Rukum (Maikot village) is the study site chosen, as it was least studied pasture amongst other 26 mountain pastures where the fungus is harvested in Nepal. Maikot is inhabited by indigenous ethnic groups namely Magars who are involved in managing the fungus through a local management committee in the area. An in-depth interview was conducted in May/June 2019 with the executive of the management committee to learn about the management practices. Altogether, 223 harvesters were also interviewed in the pasture itself during the same period. The harvesters and the management committee report that ‘one home one security’ strategy has reduced the number of harvesters from outside by half compared to previous years. As a result, less pressure on the resource base. The implication of this management strategy has economic implications on outside harvesters but could enhance the sustainability of this vitally important resource for local livelihood in the region.