It is conferred on members of the royal family or Nepali citizens who make outstanding contributions to the nation, and to foreigners making special contributions to the welfare of Nepal.
The medal was first instituted by King Tribhuvan Bir Bikram Shah Dev in 1936.
After the end of the monarchy in 2008, the new government initiated this new series of awards.
The award is conferred by the President of Nepal on Republic Day, May 29.
The ribbon of the order is navy blue with white-edged green edges.