Nepal’s inland freshwater resources provide immense potential for aquaculture and fisheries to contribute significantly to food security, employment, and economic growth. This paper assesses the economic and ecological importance of the sector using the Cobb-Douglas production function and Logistic Growth Model. National fish production has shown a consistent rise from 24,295 Mt in 2007/08 to 82,161 Mt in 2022/23, with aquaculture accounting for over 72%. The logistic growth model indicates a carrying capacity of 151,484 Mt, suggesting potential for further expansion. However, regional disparities and input constraints remain. Empirical results show that water surface area (capital input) plays a more dominant role than pond area (labor). The study recommends targeted investment in infrastructure, green technologies, training programs, and community-based management to ensure sustainable growth and equity. The paper emphasizes the need for policy integration, investment in green technology, and participatory resource governance.