Over the last few decades,the bad faith in Trademark has been a major issue,it has generally violated many works,due to laws and rules against bad faith has made it easy to file a Trademark in national and international level.In many jurisdictions,bad faith has become an essential argument against marks registered by squatters.However,determining what constitutes bad faith remains challenging for most Trademark practitioners.The purpose of this thesis is to ascertain the core to the problem with bad faith Trademark applications.Bad faith filing is common misconduct where an infringer registers a Trademark that is identical or confusingly similar to another Trademark or to someone’s prior rights in order to prevent the Trademark from entering the market or to gain profit by taking advantage of the brands existing reputation and business strategy.As an infringed party may only attain damages where bad faith can established,it is important to examine what constitutes bad faith in the Chinese legislation and Nepalese legislation.The issue originates in Chinese defrauder’s with the intent of unlawfully registering their Trademarks in China.Since China apply a ‘first-to-file’ system,unregistered Trademarks enjoy very little protection.The analyses demonstrates that the core to the problem with bad faith Trademark applications in China fall into several aspects significant to the Chinese Trademark system.Although the law is a great leap in Nepalese Trademark development,it does not sufficiently address the issue with bad faith Trademark applications.