Nepal, a Himalayan state, has a diverse topography, including cultures, languages, religions, and ethnicities. Yakkha is one of the listed indigenous nationalities of Nepal and mostly live on the eastern hills of the country. It is different from Rai and Limbu in the context of language, culture, and territory. To consider this, the Nepalese government provides a distinct identity to Yakkha although most people are still unaware of Yakkha and ask whether Yakkha is Rai or Limbu. Still, the Yakkha is kept under Rai even on websites and people are confused. Besides, some original Yakkha themselves write Rai, Dewan, and Limbu as their caste. They are also forgetting Yakkha languages and cultures. So, this article attempts to clarify the identity of Yakkha who is living in the eastern hills. There is much research conducted about indigenous communities by national and international researchers, but very little literature is available regarding Yakkha; as a result, the identity of Yakkha is in transition and it is marginalizing. Still, the ethnic organization has been working for 29 years ago but its tasks are not satisfactory. So, this article attempts to clarify the identity of Yakkha, who is living in the eastern hills of Nepal. Moreover, this paper also tries to portray the causes of the marginalization of Yakkha in Nepal. Mainly, this paper is prepared from the data from a field survey conducted in 2014. In-depth interviews, field notes, and field observation were the main methods adopted to collect the data. In addition, the previous study reports, reports of various censuses, books, and research reports were also equally applied to fulfill the research objectives of this paper. Nowadays, in Nepal, various ethnic groups are raising their voices to establish their identity; however, the Yakkha is not so active. That’s why the identity of the Yakkha is marginalized due to internal and external causes. The researcher found that the less practice of speaking Yakkhas` mother tongue by Yakkha themselves, documentation errors, and lack of research works and publications are the main reasons for marginalizing Yakkha in Nepal.