The protesters shouted slogans against China and demanded freedom for Tibet as they were bundled into vehicles by baton-wielding policemen.
The demonstrators were detained this afternoon while they were staging protest in front of the embassy, the police said.
The arrested were being held at Maharajgunj and Kamalpokhari police stations, the Kantipur online said.
Nepal, which has over 20,000 Tibetan refugees, has witnessed frequent anti-Beijing demonstration since the most vicious protests against the Chinese rule erupted in Tibet on March 10 and hundreds of protesters, many of them young monks and women, have been arrested in the south Asian nation.
The protests were temporarily halted last week during the country's Constituent Assembly elections but resumed soon after the polls.
China had asked Nepal to act tough against the Tibetan refugees who have been organising regular anti-Beijing protests here, terming their demonstrations as "illegal political activities."
Chinese Ambassador to Nepal Zheng Xialing urged the interim government here to check anti-Beijing activities as he claimed that most Tibetan protesters in Nepal were associated with the 'Tibetan government-in-exile.'
Nepal's government had announced that it would not allow any demonstrations against friendly nations, including China.
The US-based Human Rights Watch (HRW) expressed concerns over the Nepal Police "arbitrary" intervention in Kathmandu against Tibetan exiles protesting Beijing's crackdown on the pro-independence struggle in Tibet.