Nepal was formerly a kingdom.
The Kingdom of Nepal , also known as the Kingdom of Gorkha , was a kingdom formed in 1768 by the unification of Nepal . Nepal . By the 18th century , the Gorkha Kingdom achieved the unification of Nepal . The Shah dynasty established the Kingdom of Nepal and later formed an alliance with the British Empire , under its Rana dynasty of premiers . The Nepalese Civil War resulted in the proclamation of a republic in 2008 , ending the reign of the world 's last Hindu monarchy . The country struggles with the transition from a monarchy to a republic .