Lord of Nepal, Rana Bahadur Shah took banish in Varanasi from 1800 to 1804 and titled himself as “Swami Nirgunanda”. Amid his outcast, he chose to manufacture an imitation of Pashupatinath Temple in Varanasi. Development of the sanctuary initiated amid his outcast/remain in Varanasi. Amid the development, Shah moved back to Nepal. On April 25, 1806, Rana Bahadur Shah was wounded to death by his stepbrother, Sher Bahadur Shah. His child Girvan Yuddha Bikram Shah Deva finished the venture 20 years after the due date. The land was later exchanged to Rana Bahadur Shah by Kashi Naresh in the year 1843. The sanctuary, adjoining zone, Lalita Ghat and a dharamshala, has a place with the Nepal government.
Nepali Mandir otherwise called (a.k.a Kanthwala Mandir and Mini Khajuraho) (Kanthwala in Hindi means wooden), is one of the most seasoned and most renowned sanctuaries in the blessed city of Varanasi. This sanctuary has incredible religious significance in Hinduism and is devoted to the Lord Shiva. Built in the nineteenth century A.D by the King of Nepal, the sanctuary is made of earthenware, stone and wood and is copy of the Pashupatinath Temple in Kathmandu.
Nepali Mandir is situated on Lalita ghat in Varanasi. It is 3.8 kilometers South-East of Varanasi Junction railroad station and 100 meters South-West of Manikarnika Ghat.