Bir Shumsher Jang Bahadur Rana succeeded Ranodip as Prime Minister and took over the palace.
In 1886, Bir Shumsher ordered the old palace demolished, and a new one constructed by architect Jogbir Sthapit as a residence for King Prithvi Bir Bikram Shah, his son-in-law.
This moved the royal residence from Hanuman Dhoka Durbar to Narayanhiti.

The palace was damaged in the 1934 Nepal–Bihar earthquake, killing two infant daughters of King Tribhuvan.
Colonel Surya Jung Thapa, an engineer, oversaw repairs and renovations which added a new portico and grand staircase.

King Mahendra ordered the palace to be demolished and replaced in 1963.
The new palace was designed by American architect Benjamin Polk, who was living in India.
Nepalese architecture styles were used to create a national symbol.
Construction ended in 1969.
Griha Pravesh (a housewarming party) was performed on 27 February 1970 for the wedding of Crown Prince Birendra.

Mahendra sold the palace to the Government of Nepal in 1972 for NPRरू70 million (seven crore).
He claimed that the property was the dowry of Queen Divyeshwari, his paternal grandmother.

On 1 June 2001, Crown Prince Dipendra murdered multiple members of the royal family in the palace before shooting himself.
Among those killed were King Birendra and Queen Aishwarya.
Bir Shumsher Jang Bahadur Rana succeeded Ranodip as Prime Minister and took over the palace. In 1886, Bir Shumsher ordered the old palace demolished, and a new one constructed by architect Jogbir Sthapit as a residence for King Prithvi Bir Bikram Shah, his son-in-law. This moved the royal residence from Hanuman Dhoka Durbar to Narayanhiti.
The palace was damaged in the 1934 Nepal–Bihar earthquake, killing two infant daughters of King Tribhuvan. Colonel Surya Jung Thapa, an engineer, oversaw repairs and renovations which added a new portico and grand staircase.
King Mahendra ordered the palace to be demolished and replaced in 1963. The new palace was designed by American architect Benjamin Polk, who was living in India. Nepalese architecture styles were used to create a national symbol. Construction ended in 1969. Griha Pravesh (a housewarming party) was performed on 27 February 1970 for the wedding of Crown Prince Birendra.
Mahendra sold the palace to the Government of Nepal in 1972 for NPRरू70 million (seven crore). He claimed that the property was the dowry of Queen Divyeshwari, his paternal grandmother.
On 1 June 2001, Crown Prince Dipendra murdered multiple members of the royal family in the palace before shooting himself. Among those killed were King Birendra and Queen Aishwarya.
Narayanhiti Palace