The 19-seater Twin Otter of Nepal Airlines took off from Pokhara airport at 12:40 pm and disappeared 15 minutes later.
"The aircraft with 15 passengers and three crew members, which flew from 12.40 pm from Pokhara airport lost contact with the airport tower minutes after take off," according to Nepal Airlines officials.
It later found crashed in a jungle at Khidim of Arghakhanchi district.
The aircraft was carrying 14 Nepalese passengers, including an infant and a Danish citizen.
As per the preliminary reports bad weather was the cause behind the accident.
The accident site was spotted, where fire flames were seen and army and civilian helicopters have been mobilised to carry out rescue operations.
In December, the EU put all of Nepal's airlines on a blacklist, citing safety fears.
In September 2012, a plane operated by Nepal's Sita Air crashed near Kathmandu airport, killing 19 people.
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