The present work was undertaken to study the functional properties (oleoresin, pungency, antioxidant activity, phenolic content, ascorbic acid content and natural pigments) of six chilli varieties found in Kathmandu, Nepal. The yield of oleoresin was found to be higher in ethyl acetate than acetone. Habanero showed the highest pungency (420,000 SHU) while Bell pepper showed lowest pungency (0 SHU). The antioxidant activity was higher in Habanero (IC50 = 206.43 µg/mL) due to high phenolic content 128.6 mg of GA/g and low in Indian pepper (IC50 = 578.16 µg/mL) due to lower phenolic content 74.92 mg of GA/g. The ascorbic acid contents were ranged from 38.59±4.53 to 107.52±18.65 mg/100g and maximum was observed in Pimento. Among six varieties, chlorophyll and carotenoid contents were found to be maximum in Jire.