According to 2001 census, 10.74% of Nepal's population practiced Buddhism, consisting mainly of Tibeto-Burman speaking ethnicities and the Newar.

[9] In Nepal's hill and mountain regions Hinduism has absorbed Buddhist tenets to such an extent that in many cases they have shared deities as well as temples.

During the reign of King Amshuverma, the Nepalese princess Bhrikuti played a significant role in spreading and developing Buddhism in Tibet.

Buddhism is the dominant religion of the thinly populated northern areas, which are inhabited by Tibetan-related peoples, namely the Sherpa, Lopa, Manangi, Thakali, Lhomi, Dolpa and Nyimba.

Ethnic groups that live in central Nepal such as the Gurungs, Lepcha, Tamang, Magar, Newars, Yakkha, Jirel, Thami, Chhantyal and Chepang are also Buddhist.

Emperor Ashoka of the Maurya Empire put up a pillar at Lumbini, the birthplace of the Buddha, in the second century BCE.

It is possible that this practice, in its earliest incarnation, was related to the worship of stones, which may have originated in the early, rival Kirata inhabitants of the Valley, prior to the Licchavis.

At times, the inscriptions indicate, it could even involve resurfacing an existing Caitya and covering the new surface with many elaborate paintings.

Caitya worship was an important factor in bringing more of the proto-Newar tribal inhabitants into the Buddhist fold, as it was a devotional practice designed for the general public.

This festival was celebrated by hundreds or even thousands of people, who helped to construct and transport a huge, wheeled cart that bore the image of Avalokitesvara for several days or weeks along a specific route.

Strikingly, parallel points within the Buddhist cave contain inscriptions of Maharashtra, which predated the Licchvi Nepal.

During the reign of Jayasthiti Malla, after implementation of Manawa dharmasastra, celibate monks were banned from practicing in Nepal.

However, Newar Buddhism has retained a distinct identity, and nearly all practices, art forms and castes remain.

On the other hand, the Thakali, who had traditionally played an important role in the Nepali society but yet retained Tibetan Buddhism, have begun to embrace Hinduism as well in the recent years.

It is significant to note that during the autocratic Rana regime, several Theravada Buddhists were banished from Nepal for preaching Buddhism.

[14][15] The Banishment of Buddhist monks from Nepal in 1926 and 1944 was prompted by an attempt to suppress the revival of Theravada Buddhism which began in the 1920s.

The delegation emphasized that Nepal was the birthplace of Gautama Buddha, and that his followers should be free to practice their faith in the country where he was born.

Subsequently, the ban was lifted and the monks returned and devoted themselves to spreading the faith with greater energy.

[16][17] Also, the rediscovery of Lumbini, the birthplace of Buddha, occurred in this era with contributions from among others, General Khadga Sumsher Rana.

Every year, Kathmandu receives more than 10,000 travellers from all over the world just to visit the Boudha Boudhanath and the Swyambhu Maha Chaitya Swayambhunath stupas.