Pashupatinagar is a neighborhood in Suryodaya Municipality of Ilam District of Province No. 1 in Nepal. Previously it was a separate Village Development Committee in Ilam District in the Province No. 1 of Nepal. Pashupatinagar was Incorporated with Suryodaya municipality in 2017 and divided into two wards. The ward no. 2 and 3.

Pashupatinagar is near Nepal’s eastern border at Darjeeling District, West Bengal State, India. There is a border crossing to Sukhiapokhri town with a customs checkpoint. Indian and Nepalese nationals cross without restriction.