[11] On 5 July 1997, Pappu Yadav, Raghuvansh Prasad Singh, Mohammad Shahabuddin, Abdul Bari Siddiqui, Kanti Singh, Mohammed Taslimuddin and Md Ali Ashraf Fatmi along with seventeen Lok Sabha MPs and eight Rajya Sabha MPs along with supporters gathered at New Delhi formed the new political party, Rashtriya Janata Dal.

In the March 1998 national elections, RJD won 17 Lok Sabha seats from Bihar but failed to make significant headway in any other state.

Continuing its upswing in electoral fortunes, the party won 24 Lok Sabha seats in the 2004 elections that it fought in alliance with Indian National Congress.

It was a part of Indian National Congress led United Progressive Alliance (UPA) from 2004 - May 2009, wherein Lalu Yadav held the position of the Minister of Railways.

In the state elections held later that year – as a result of no party being able to form a government and RJD continued its downward slide winning only 54 seats.

In order to protect his clean image towards corruption, Nitish Kumar resigned on 26 July 2017, ending RJD's stake in Bihar government.

[27][28] In August 2022, the Mahagathbandhan, Janata Dal (United), Indian National Congress, Hindustan Awam Morcha and Left Front joined again to form 2/3rd Majority government in Bihar Legislative Assembly.

[31] During Lalu Prasad Yadav's tenure as Chief Minister, Bihar's law and order was at lowest,[32][33] kidnapping was on rise and private armies mushroomed.

[34] He was also criticized by opposition in the Shilpi-Gautam Murder case and the death of his daughter Ragini Yadav's friend, Abhishek Mishra, in mysterious circumstances.

[35][36] An investigation into the land-for-jobs scam has implicated Lalu Prasad, along with both of his sons, as well as his wife Rabri Devi and his daughter, in addition to their involvement in other corruption scandals.