The story about the origin of Kathmandu Valley

Balaram Thapa
Balaram ThapaUpdated: Apr 25th 2025 | What do do in Nepal

The hustling and ever-busy metropolitan of Kathmandu certainly wasn't always like how it is today. Thousands of years ago, it was said by the old grandmothers to their grandchildren that Kathmandu valley wasn't even here. It was all submerged in the waters of a vast lake called Nagdaha. Archeologists confirm this because the valley's soil is fertile and lacustrine, extremely suitable for growing crops and vegetations and growing various foliages. Kathmandu is one of the oldest towns in the country and can be traced to the period between 167 BC and 1 A.D.

Manjushree Bodhisattva, A Demi-God

The story goes that Manjushree Bodhisattva, a Demi-God, came to Chobhar Hill and cut the hill open with his flaming sword, draining the valley's water away. When one visits the site of Chobhar Hill, the gap between the mountains does look like it's been sliced with a swords. It's a clean cut. The emergence of land after the water drainage led to people moving in and starting agriculture and building up settlements in the Kathmandu area.

As the valley grew, Manjushree is said to have worshipped Swayambhu on the hillock where the present Swayambhu temple is located. He also founded the city of Manjupatan, which today lies within the current Kathmandu Metropolitan area, located between Swayambu and Gujeswari.

He even declared his disciple 'Dharmakarma' as the ruler of that city. The reign of the Abhir dynasty (cowherds) and the Kirants are said to be the proper settlers of Kathmandu and are said to have come initially from the northeastern hill region of India around 700 BC. Their succession of 29 rulers reigned here until the Lichchhavis came into power. The Lichchhavi period is the golden period in medieval Nepal because of the vast amount of reforms of development that happened during this time.

First Government Building - the Mangriha

There was the erection of the first government building, The Mangriha, and the introduction of the first coins, The Mananka by King Mandev, during the Lichchhavi period. Temples were being constructed, new improvements were being developed, and as a result, the Kathmandu valley increased its population as more and more people migrated into the valley for trade and settlement. The barter system was eliminated, and the method of money was brought in, which significantly improved the international trading system between medieval Nepal and its neighboring countries of India and Tibet.

The four stupas around the city of Patan, near Kendra Hiranyavarna Mahavihara (called "Patukodon"), 5 kilometers away from Kathmandu, is said to have been erected by Charumati, attests to the ancient history.

Charumati was a daughter of the Indian emperor Ashoka through a concubine and the adopted daughter of his wife, Empress Asandhimitra. She was trained in nursing by the Empress. She was married to a Nepalese prince Devapala Kshatriya in Kathmandu. She is credited with having founded the monastery of Chabahil (called Charumati Vihara), one of Nepal's oldest Buddhist monasteries. On the other hand, Emperor Ashoka was the Ruler of India at medieval times and visited Lumbini in Nepal, and there, he erected the Asoka pillar near the Mayadevi Temple.

Kathmandu during the Lichhavi dynasty

During the reign of the Lichchhavi dynasty (400-750 A.D.), two adjoining settlements, Yambu or Thahne ('Yambu' in Nepali means "the field of Kathmandu" and 'Thahne' means "northern land") and Yangal/Kone ('Yangal' in Nepali means "depressed area" of Kathmandu, Kone means "southern land") formed Kathmandu, also known as Kilogram. The Kilogram is believed to be the settlement of Koliyas, some of whom migrated to Kathmandu valley after Mahajanapada era. The Lichchhavi king Gunakamadeva (see "The Legend of the Bhoto Jatra" on our blog for another exciting story!) founded a city in between these two settlements on the bank of the Bishnumati river called "Kantipur." The town was formed in a Chandrahrasa (Manjushri's sword) mentioned in the Swayambhu Purana. The fortification of the city was done with eight barracks that Ajimas guarded.

The Ajima is a group of Goddesses of the Newari pantheon. The Goddess represents the female ancestors of a Newar. These Goddesses are respected by all sects and castes of Newars irrespective of religion. (The word "Ajima" comes from two Nepali words, "Aji" meaning grandmother and "Ma" meaning mother. This deity represents all the female ancestors of Newar who have been digitized). According to folklore, Gunakamadeva dreamt of finding Laxmi (or Kanti) city, so the town was formed in her name, Kantipur.

Nepal Sambat

According to Nepal Sambat, the city is believed to have been founded on the auspicious date of Yenya Punhi, with the founding stone laid by Gunakamadeva at Maru Tole, which is still present. To appease relations between the citizens of Yembu and Yengal, the king is believed to have started a festival where the Majipa Lakhey dance of Kone (Yengal) and Pulukishi dance of Yembu (Thahne) were performed together along the main road of the newly formed city connecting the two settlements (now called Gunakamadeva Marg). The festival is still celebrated as Yenya or Indra Jatra today, but the festival's primary focus has shifted to Indra and Kumari over a long period.

Tantric traditions

According to Tantric traditions, a marketplace was formed in a circular shape at the city's center (Chakrakar). A temple dedicated to Bhimsen, the god of merchants, was built at the center of Bhimsenthan to attract merchants. There were 48 Lichchhavi rulers, including Mandev I, who ruled from 464 and had been referred to as their greatest ruler. A connoisseur of art and architecture, he introduced the Pagoda-roofed architecture, erected exquisite sculptures, and built the temples of Changunarayan, Vishabjynarayan, Sikhomanarayan, and Ichabgunarayan. The reclining Vishnu of Budhanilkantha, the gilded roof of the Pashupatinath Temple, Hanuman Dhoka, and the Basantapur Tower, the Uku Bahal in Patan, and the Indreshwar Mahadev Temple at Panauti are all credited to Mandev.

A whole array of dynasties ruled over the valley after the Lichchhavis. Modern History of Kathmandu recites that after the unification of Nepal by King Prithvi Narayan Shah (a whole story in itself), the Shahs established their rule over Gorkha, and dictatorship ensued, with the Ranas becoming all-powerful. During this period, Shahs as Monarchs were figurehead monarchs, while the real power rested with the Ranas.

The time has passed on significantly, and Kathmandu valley is what it is now, incorporating modernization while still having the history of its origins intact along the pitched roads and massive commercial buildings.

Early Inhabitants and Dynasties:

  • Ancient Settlements: Archaeological evidence suggests that Kathmandu and its sister cities of Patan and Bhaktapur were established between 167 BC and 1 AD.
  • Legend of Manjushree: A popular legend attributes the valley's formation to the Buddhist deity Manjushree, who is said to have drained a large lake by cutting a gorge, making the area fertile and habitable.
  • Gopala and Kirata Dynasties: Early rulers of the valley are believed to have included the Gopala, Mahispalas, Aabhirs, Kirat, and Somavanshi dynasties. 
  • Licchavis (300-879 AD): This dynasty is credited with shaping the cultural and architectural character of the valley, establishing Hinduism and Buddhism as major religions and fostering trade and education.
  • Malla Dynasty (12th-18th centuries): This period saw a flourishing of art, culture, and architecture, with the Malla kings creating independent city-states of Kathmandu, Patan, and Bhaktapur.

Rise of the Gorkha Kingdom and the Shah Dynasty

The rise of the Gorkha Kingdom in the 18th century marked a turning point in Nepal’s history. Under the leadership of King Prithvi Narayan Shah, the Gorkhas initiated a campaign to unify the fragmented kingdoms of the Kathmandu Valley and beyond, laying the foundation for modern Nepal.

Conquest by Prithvi Narayan Shah

Prithvi Narayan Shah, the ambitious king of Gorkha, set his sights on the Kathmandu Valley—then a cluster of independent Malla kingdoms. Recognizing the valley’s political significance and economic potential due to its location along ancient trade routes between India and Tibet, he launched a strategic and determined campaign to unite Nepal under a single rule. His success in this endeavor established the Shah dynasty and began the process of national unification.

Battle of Kirtipur

One of the most defining moments in this unification effort was the Battle of Kirtipur, which served as a critical breakthrough in Shah's military campaign. Despite initially facing strong resistance and even suffering defeat, Prithvi Narayan Shah eventually captured the fortified city of Kirtipur after multiple attempts. The battle was brutal and left a lasting impact—legend says the Gorkha forces exacted a harsh punishment on the city, sending a stern message to other kingdoms.

This victory paved the way for the eventual conquest of Kathmandu, Patan, and Bhaktapur, securing the Kathmandu Valley and solidifying Prithvi Narayan Shah’s vision of a unified Nepal.

Legacy and UNESCO Recognition

Architectural and Cultural Heritage

The Kathmandu Valley stands as a living museum, celebrated for its extraordinary architectural and cultural heritage. From intricately carved wooden temples and centuries-old palaces to iconic stupas and courtyards, the valley reflects a harmonious blend of Hindu and Buddhist influences. Its architecture, deeply rooted in Newar craftsmanship, tells the story of Nepal's artistic and religious traditions.

UNESCO World Heritage Site

In recognition of this rich legacy, UNESCO designated seven monument zones within the Kathmandu Valley as a World Heritage Site. These include Kathmandu Durbar Square, Patan Durbar Square, Bhaktapur Durbar Square, Swayambhunath, Boudhanath, Pashupatinath Temple, and Changunarayan Temple. Each site is a testament to Nepal’s enduring spiritual and cultural depth, preserved across centuries despite natural and political challenges.

Modern Kathmandu

Today, Kathmandu is more than just a historical capital—it’s a vibrant, ever-evolving city that bridges ancient heritage with modern life. The city thrives as Nepal’s cultural and economic hub, home to a diverse population, a dynamic art scene, and a booming tourism industry. While modern infrastructure continues to grow, the echoes of its majestic past remain etched in every alley, stupa, and temple courtyard.

Photo Credit: Tundikhel in 1921. Photo: Madan Puraskar Pustakalaya archive.

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