Kathmandu is classified as a highly earthquake prone city of Nepal. The center of Kathmandu City is located in the vicinity of ten independent seismic source zones which in reality are active faults. This creates uncertainties in the size, location and the rate of recurrence of earthquakes. Probabilistic seismic hazard analysis provides a framework in which these uncertainties can be identified, quantified and combined in a rational manner to provide a more complete picture of the seismic hazard. This study presents a PSHA of the center of Kathmandu city using the attenuation relationship given by Cornell et al (1979) in order to determine various levels of earthquake-caused ground motion that will be exceeded in a given future time period.