Agriculture is the backbone of Nepalese economy. Commercialization of agriculture sector is deemed necessary for economic growth. However, its negative repercussions on environment and health of farmers stimulated organic movement in the country. Nonetheless this movement is still in its initial phase and lacks research based activities especially when it comes to assessing its impact on households. This study intends to analyze farmer’s perception on yield and income from organic vegetable farming in Kathmandu valley and Chitwan district of Nepal. Study shows less than half of respondent perceived increased yield in organic vegetables. It also indicates their perception is positively related to experience of practicing organic farming and negatively to having large-sized farms. Thus, support should be provided during initial years as yield improves only in later years. Access to premium market assures increased income and compensates for decreased yield of organic vegetables. In this regard, consumer awareness on appearance of organic vegetables should be emphasized which could help establish and boost local organic vegetable market.