Introduction: Diarrhea contributes as a major burden of disease among children in Low- and middle-income countries. Incidence of diarrhea stands as 500 per 1000 under five children in Nepal. Mothers play a vital role in its prevention and home care management. Objective of the study was to assess the level of awareness regarding prevention and management of diarrheal disease among mothers of under five children in Bara district of central Nepal. Material and Methods: A community-based household survey was conducted during November to December 2020, among 284 mothers of under five children using a semi structured interview schedule through face-to-face interview technique. Collected data was entered and analyzed using SPSS version 18. The probability value of <0.05 was considered statistically significant at 95% confidence level. Results: Among 284 respondents, (19.6%) reported that their child had at least one episode of diarrhea within the last three weeks of data collection. Among them (9.25%) had taken their child to health center and remaining (10.35%) managed it at home. Furthermore, (69.3%) reported that their child had been in contact with female community health volunteers (FCHVs). Almost all respondent heard about ORS whereas only (43.2%) knew the correct technique to prepare and use ORS. Regarding awareness majority (61.4%) had poor level of awareness. Level of awareness was significantly associated with educational status and number of children of respondents. Conclusions and Recommendations: Majority of respondents had poor level of awareness regarding prevention and management of diarrhea. Strengthening the capacity of FCHVs and conducting various community-based health intervention in the form of teaching, health exhibition and demonstration can contribute in increasing the level of awareness among the community people.