[10] He strengthened relations with China as an alternative to Nepal's traditionally close trade ties with India and updated the map of Nepal by constitutional amendment to include territories disputed with India, for which he has received some domestic praise and a reputation as a nationalist.

[11][12] Oli's tenure in office has been controversial for frequent use of tongue-in-cheek remarks, hostility towards critics and the media,[13][14] and accusations of fostering cronyism and corruption.

[16][17][18] After he turned eighteen in 1970, Oli became a member of his local chapter of a splinter group of the Communist Party of Nepal.

Oli, Mohan Chandra Adhikari and Ram Nath Dahal advocated for organizational expansion and public mobilization arguing that authorities would crack down on them for any violent activities.

[16] Oli was made a central committee member of the Madan Bhandari-led CPN (Marxist–Leninist) while in jail and after his release in 1987 became involved in party activities.

After Bhandari's death on 16 May 1993, a commission to conduct an investigation was made by prime minister Girija Prasad Koirala under the leadership of former supreme court justice Prachanda Raj Anil.

He was reelected in the 1994 election from Jhapa 6 and became Home Minister in the minority government of Man Mohan Adhikari.

[25] He was also made chair of a cabinet committee to implement the High Level Probe Commission report which investigated abuses of state power and funds since the royal coup.

He was also reelected to the central committee by the congress but lost his bid for party chair to Jhala Nath Khanal.

[32] His appointment came at the time of protests in the southern plains demanding revisions to the constitution and a blockade imposed by India.

The main coalition partner CPN (Maoist Centre) and the opposition Nepali Congress had registered a no-confidence motion against his government on 14 July 2016.

[54][55] He also received criticism for suggesting that the rising number of coronavirus cases were from individuals breaking the lockdown, especially those sneaking into Nepal from India.

He also claimed that the corona is similar to the flu and that one should sneeze and drink hot water to drive the virus away.

Sharma Oli of not following the party's directions, unilaterally leading the government and turning a blind eye towards corruption.

[69] The decision was met with criticism from within the party and seven ministers close to the Dahal–Nepal faction in his cabinet resigned in protest.

[70] On 23 February 2021, a constitutional bench led by Chief Justice Cholendra Shumsher Rana declared the dissolution unconstitutional, and reinstated the House to meet within 13 days.

[83][84] On 12 July 2021, the constitutional bench of the Supreme Court formed to hear the opposition's writs against the dissolution.

[89][90][91] Oli was re-elected party chair in the 10th general convention of the CPN (UML) in November 2021 defeating Bhim Rawal in the leadership election.

[97][98] Following disagreements with the prime minister and other coalition partners about the annual budget and citing the need for a stable government of national consensus, Oli and Nepali Congress' Deuba agreed on 1 July 2024 to form a rotational government with the two party chairs serving equal time as prime minister.

[99][100] CPN (UML) withdrew its support from the Dahal government, and following a failed a motion of confidence for Dahal in the House on 12 July, Oli was appointed prime minister for a fourth stint on 14 July as part of a coalition with the Nepali Congress, and sworn in the following day.

[16] Oli was regularly in conflict with "hardliners" that advocated for armed struggle against the Panchayat administration.

Oli supported Mohan Chandra Adhikari's opinion that their presence was part of India's imperialist ambitions in the region.

Oli played an important role in getting parliamentary support for the Mahakali treaty that was to be signed with India.

The treaty was a reason cited for causing a split in the party and it led to Oli being seen as a pro-India leader.

[104] He said this during an address to the parliament where he blamed the rising number of coronavirus cases on individuals violating the nationwide lockdown, especially those sneaking into Nepal from India, claiming that "people coming from India through illegal channels are spreading the virus in the country.

[105][106][107] While addressing a function celebrating the 207th birth anniversary of poet Bhanubhakta Acharya on July 2020, Oli said Lord Rama was born in Nepal and India had created a fake Ayodhya.

[17] He also claimed to have found strong evidences of the real Ayodhya, supposedly including the ruins of Someshwar Gadhi and Valmiki Ashram, both of whom are associated with Lord Rama.

[117] Oli also defied party whip and was not present when the interim legislature declared Nepal as a republic.

He met Shakya in 1987 at an event organized by CPN (Marxist–Leninist) for recently released political prisoners in Pulchowk Campus.

She was working as a temporary worker for Nepal Rastra Bank at the time, while studying at Patan Campus.