The generally accepted narrative is that he was a person of noble birth in the Mithila region, and was brought to Kathmandu valley by Devaladevi in 1354 to marry Rajaladevi, her granddaughter and the heir apparent of Bhadgaon.

Jayarjuna reigned as the monarch, with Jayasimha Rama as the prime minister, but Jayasthiti held a significant control over the valley.

The then prime minister of the valley, Jayasimha Rama, plotted a rebellion against Jayasthiti in order to curb his growing influence.

Jayasthiti Malla promptly defeated the rebels and fifty-three prominent leaders of Patan were killed.

[7] On 23 November 1381, Jayasthiti Malla, with the consent of Patan, exiled the reigning monarch Jayarjuna to Banepa which excluded the latter from being involved in any sort of political activities in Kathmandu valley.

Jayarjuna attempted to regain his control by returning to Gokarna and attacking Bhadgaon but Jayasthiti defeated and arrested him.

Bhontas declared independence, with Jayasimha Rama as the leader, and the local lords of Patan also attempted to be autonomous.

[11] Jayasthiti Malla is generally considered the first ruler to define jobs based on caste system.

Literate Buddhist Bhikshus were to act as priests and preceptors and the rest were to work as carpenters, masons, and other artisans.

This division of labor is considered to have reduced unemployment problems and also made people skillful in their respective jobs.