Abstract
This study has examined the process how Nepal became a secular state. Revolution for democracy in 2006 dethroned the King; Maoists waging decade long armed conflict signed a peace agreement and joined mainstream politics. Soon after the peace agreement Nepal “the only Hindu Kingdom in the world” with some 80% following inhabitants was officially declared a secular state. The case of Nepal is exceptional which moves from religious to secular country where the propensity is for more determined religious nationalism elsewhere. This study has sought to separate interdependent variables while attempting to explain secular change. Political instability, weak state capacity, illegitimacy of the ruler, external and internal pro-secular lobbying together made this change possible.