The Nepalese Currency Counterfeit Detection System aims to address the growing threat of counterfeit currency in Nepal. Counterfeit banknotes pose a significant risk to the nation's financial stability and erode public trust in the monetary system. This system seeks to differentiate genuine banknotes from forgeries, thereby ensuring the integrity of financial transactions. Counterfeiting activities have a detrimental impact on the livelihoods of individuals and the overall economy. To combat this issue, this project will thoroughly investigate the various security features embedded within Nepali currency. Subsequently, it will leverage advanced image processing and computer vision techniques to develop a software-based solution capable of detecting and validating the authenticity of Nepali banknotes. While specialized machines are available in banks and commercial establishments for currency authentication, these systems are often inaccessible to the general public. This project aims to bridge this gap by developing a user-friendly software application that empowers individuals to independently verify the authenticity of Nepali currency.