One of the serious public health challenges of Nepal is the low utilization of health facility to deliver the baby despite the serious commitment of the government, such as free delivery services and incentives for the institutional delivery. To address this challenge in the current reproductive health program, identification of the factors contributing to health facility delivery is of vital importance. Ethnicity, parity and number of antenatal visit appeared strong influencing factors for the choice of place of delivery. The main cause for not utilizing the health facility for delivery were found to be the successful experiences of home deliveries by self or by immediate relatives or neighbors. It points out the need for effective interventions such as community maternal health education program. It should sensitize the target mothers especially the mothers from Dalit/Janajati community and multiparous women on the benefits of visiting ANC clinics, utilizing delivery at health facilities vis-à-vis the risks and vulnerabilities associated with home based deliveries. At the same time, extensive family planning program is needed to check the trend of high birth frequency among the multiparous mothers.