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This study examines the impact of improved rice varieties on household wellbeing measured by headcount poverty reduction and household total annual consumption across different agroecological regions of Nepal by using cross-sectional data of Nepal living standard survey III. The propensity score matching method was used to evaluate the impact on wellbeing of adopter and non-adopter farmers. The results indicate that adoption of improved rice varieties increased the adopter households’ annual agricultural earning and consumption expenditure by almost US$ 153–185 and US$ 643–907, respectively. Adoption of rice varieties has statistically significant and positive welfare effects on large and small farmers compared to the medium farmers. Large and small farmers on the other hand tend to have more impact on household expenditure and agricultural earning as compared to the medium farmers. Technological adoption has statistically significant and negative impact on poverty among the large farmers. We conclude that an investment on breeding research and wider dissemination of improved crop varieties will help to enhance household wellbeing and reduce poverty of the farmers.