This paper investigates the effectiveness of senior citizen social security allowance scheme in Dhangadhi Municipality. Following the definition of First World Assembly on Ageing (1982) and Jestha Nagarik Aein (2063), this study defined elderly persons as those who are 60 years and above. This study is primarily based on primary data which were collected from field survey during the month of November and December, 2012. This study covers all the wards of Dhangadhi Municipality using two stage cluster sampling and 280 households having at least one elderly person are enumerated selecting 20 households from each ward. In the sampled households, all elderly persons were interviewed. Enumeration of all elderly persons in the sampled households ensured coverage of both males and females of all age group. Out of total, 353 elderly aged 60 years and above were successfully interviewed during the field survey. Both qualitative and quantitative survey instruments were used for this study. The tools and methods used to collect primary information were questionnaire, Key Informant Interview (KII), Focus Group Discussion (FGDs), Case Study. This study found that almost all elderly know about senior citizen allowance (99.6 %) and single women allowance (99.4 %) but very little knowledge about Dalit allowance (5 %). Near around three fifth (59 %) of the respondents were found to be receiving the allowances.