Considering the urgent need to speed up the agricultural commercialization this study assesses the initiatives on agriculture commercialization taking potato as an example. Data were collected using questionnaire survey of farm households from Sankhu, aperi urban area of Kathmandu district. The information were gathered from 85 farm households from three sample Village Development Committees selected randomly through probability proportionate to size. Both qualitative and quantitative methods were used for the analysis. From the descriptive study it was found that annually each household cultivate average area of nearly o.76 hectare of potato and earns average cash income of Rs 116,000. The study also found that the actual potato yield in the stydy area was 14 metric tons whereas the yield potential is around23 metric tons per hectare. For finding the factors affecting potato commercialization linear regression models with area under potato and contribution of potato income on the household income were estimated. The study found that non potato income and irrigated land were significant for potato area whereas non potato income, gender of the decision maker and irrigated land were found to be significant to the potato income. The study provides some recommendations for commercialization of potato in particular and agriculture in general.