The party was founded on 23 January 1975 by Narayan Man Bijukchhe and draws most of its support from Bhaktapur.

[5] The NPWO broke away from the Communist Party of Nepal (Pushpa Lal) in protest over Pushpa Lal Shrestha's support for Indian intervention in East Pakistan, together with the Proletarian Revolutionary Organisation, Nepal, and the Mazdoor Kisan Sangram Samiti.

[7] The group changed its name to the Nepal Workers Peasants Party and contested the election separately.

[8] NWPP was active in the protest movements against repression in Nepal and is a member of the Seven Party Alliance which spearheaded the 2006 Loktantra Andolan.

The party voted for Khadga Prasad Oli in the prime minister election on 12 October 2015.

[2] After visiting North Korea, party leader Narayan Man Bijukchhe has attempted to implement the governing policies of Juche into the city of Bhaktapur.