The present paper deals with the taxonomy of Selaginella from Nepal based on the examination of herbarium collections housed in major herbaria of Europe and Asia (with additional collections from virtual herbaria). A total of 25 species are recognised here, while Selaginella trichophylla and S. laxistrobila are two new records for the flora of Nepal, India (Sikkim) and Bhutan; Selaginella monospora var. ciliolata is synonymised to S. trichophylla; detailed descriptions, distribution and ecology and IUCN conservation status assessments (based on literature) are presented. For most of the species, illustrations of the leaves and strobili are provided for identification of the morphologically similar taxa.