The history of the Mahavihar dates from 1942 when Buddhist monk Pragyananda Mahasthavir came here and began revealing the teachings of the Buddha from a roadside shed.

The growing activities in Theravada Buddhism, which was making a comeback in the country, aroused the anger of the government which was intolerant of the religion.

In 1944, the autocratic Rana regime mounted a crackdown against Buddhist monks for teaching Buddhism and writing religious book in Nepal Bhasa.

In 1946, the exiled monks who had scattered to India, Tibet, Bhutan and Sri Lanka were allowed to return to Nepal due to international pressure.

Besides conducting religious services, the vihara holds retreats, Dhamma classes and free health camps.