Despite sexual harassment being rampant in Higher Education Institutions (HEI) of Nepal, there are no sexual harassment prevention policies or mechanisms in universities. The Government of Nepal formulated the Sexual Harassment at Workplace (Prevention) Act 2014, but it is insufficient in the context of universities. Moreover, due to the lack of policies and mechanisms in place, decisions regarding complaints against sexual harassment are made on an ad-hoc basis. This review paper aims to analyze the shortcomings of existing policies and mechanisms to prevent sexual harassment in Nepali HEIs, to identify relevant strategies that can be adopted by Nepal from other HEIs around the world, and to make proposals for developing effective sexual harassment prevention strategies and mechanisms. It includes an examination of governmental acts, university regulations, and case studies. The findings indicate the current governmental act is inadequate for addressing sexual harassment in universities. The lack of specific policies and systematic mechanisms in HEIs leads to arbitrary decision-making by predominantly male authorities. The paper concludes that there is an urgent need for HEIs in Nepal to develop and implement specific sexual harassment prevention policies and mechanisms. Recommendations include establishing clear procedures for handling complaints, increasing awareness and training, and ensuring fair and transparent decision-making processes.