Nepali is unique among the Indo-Aryan languages in the variable expression of morphological ergativity. The verbal agreement pattern has generalized to a completely nominative-accusative pattern, while ergative marking on arguments is obligatory in perfective transitive clauses. Outside of this domain, ergative marking varies with the bare nominative form in a way that is conditioned by both pragmatic and structural factors. The purpose of this investigation is to characterize Optional Ergative Marking in Nepali from two perspectives: (1) as the result of internal changes and contact with Tibeto-Burman languages with systems of pragmatically-conditioned ergativity, and (2) as an interaction between structure and pragmatic considerations in discourse.