Ilam ( ) is one of four urban municipalities of Ilam District, which lies in the Mahabharata hilly range of Province No. 1, eastern Nepal. Ilam also acts as the headquarters of Ilam District. Being the largest producer region for Nepali tea, its tea farms comprise a major tourist attraction in Province No. 1. Ilam is also famous for its natural scenery and landscapes as well as its diverse agricultural economy which specializes in horticultural crop production.