Ilam district (इलाम जिल्ला) is one of 14 districts of Koshi Province of eastern Nepal. It is a Hill district and covers . The 2011 census counted 290,254 population. The municipality of Ilam is the district headquarters and is about from Kathmandu.
Ilam attracts many researchers and scientists for the study of medicinal and aromatic plants, orchids, rare birds and the red panda. Ilam stretches from the Terai belt to the upper hilly belt of this Himalayan nation.
The name Ilam is derived from the Limbu language in which "IL" means twisted and "Lam" means road. Ilam was one of the ten self ruling states of Limbuwan before the reunification of Nepal. Its ruler, King Hangshu Phuba Lingdom of Lingdom dynasty, ruled Ilam as a confederate state of Limbuwan until 1813 AD. The treaty between the other Limbuwan states and the King of Gorkha (Gorkha-Limbuwan Treaty of 1774 AD), and the conflict of Gorkha and Sikkim, led to the unification of Ilam with Gorkha. Ilam was the last of the ten kingdoms of Limbuwan to be reunified into Nepal. The King of Gorkha gave the ruler of Ilam full autonomy to rule and the right of Kipat. Ilam was an independent Limbu kingdom until 1813 CE/1869 BS.
Ilam is today one of the developing places in Nepal, even though the Western parts are still struggling with the basic facilities (road networks, drinking water, health, etc.). The migration rate is very low, compared to other districts, due to the adoption of farming by individual families. Ilam Tea, a very famous leaf tea, is one of the finest quality teas in the world and is exported to many parts of Europe, Australia and the USA. The main source of income in this district is commercial agriculture (especially cash crops) like tea, cardamom, ginger, potato, broom grass (Thysanolaena latifolia) production on a large scale and dairy and dairy related products like milk (Olan), cheese, Chhurpi (Traditional hard cheese) and lollipops (local sweets).
Ilam is also considered to be an educational hub, where students from Ilam, Panchthar, Taplejung and Jhapa are plentiful.