International labor migration has positive impacts on labor migrants’ households. This paper describes the situation of urban households of Asian labor migrants from Pokhara, Nepal. Have the households’ situation been improved through international labor migration, is the main concern of this paper. The theoretical background of the study is DFIDs livelihood framework and studied the five capitals; social, financial, physical, human and environmental. The descriptive and explanatory research design were carried out. For the study purpose, Pokhara Metropolitan City was chosen purposively and ward number 13 was chosen by lottery method. The data was collected from 127 emigrants’ households through face-to-face interview using semi-structure questionnaire. Both descriptive and inferential analysis were done to accomplish the study objectives.

Most of the studied households’ economic activities is depend upon foreign remittance. However, a few households’ financial activities are supported by own business. The Western Asian countries; Bahrain, Oman, Qatar, Saudi Arabia, UAE and Kuwait are main destination of Nepali labor migrants. Only a quarter of migrants have learned skills from Nepal for the current job. The main occupation of emigrants’ is service provider and securities. The food consumption, health cares, buying household assets and education are main spending sectors of foreign remittance. The paper found that financial, social, environmental and human capitals are better in urban labor migrants’ households. But the psychological aspects of the members of study households are not happier because they each other missed emotionally during the occasions. It is concluded foreign remittance is major determinant of livelihood status of labor migrants’ household in place of origin. The internal migration status, countries of destination, length of stay in foreign countries and number of working people abroad are repeated factors affecting in overall situation of these households. This paper suggest that labor migrants are better to learn skills before departing, government has to provide the life skills trainings to the citizens.