This study investigates the underlying causes of high dropout rates among Tribhuvan University's (TU) Master of Business Studies (MBS) students. It explores the impact of this trend on the University’s goodwill. Adopting a qualitative research approach, the study includes a comprehensive literature review, theoretical framework development, and thematic data analysis through familiarization, coding, theme identification, and refinement. Internal and external factors influencing dropout rates— such as curriculum relevance, educational costs, political interference, institutional practices, and depiction mechanisms—are critically examined. Findings highlight that outdated curricula, insufficient student support services, political instability, and limited financial aid significantly contribute to declining enrollment. To address these challenges, the study recommends continuous curriculum updates, enhanced funding strategies, structured mentorship programs, and efforts to depoliticize the academic environment. Additionally, it advocates for flexible, student-centred learning models and robust support systems to manage dropout rates more effectively. The research implications extend to academic and regulatory institutions, educators, policymakers, and researchers, providing insights for sustainable educational planning, improved student retention, and long term socio-economic development. Ultimately, the study aims to assist TU in evolving into a more dynamic, globally competitive institution that fosters academic excellence and strengthens its institutional reputation.