As the eldest daughter of King Prithvi, she was the crown princess and heir apparent to the throne of Nepal until her younger brother, Tribhuvan was born.

[citation needed] The Rana prime ministers, at that time, had most of the political leadership and dominance.

King Prithvi had several daughters but no sons, and Chandra Shamsher then passed a new regulation on the law of succession, making it possible for a princess to accede to the throne.

However, Princess Lakshmi's younger brother Tribhuvan was born only five years before King Prithvi's death.

As King Prithvi's male heir, Tribhuvan acceded to the throne after his father died in 1911.