[6] RJP emerged from a split in the Rastriya Prajatantra Party, as Thapa left the RPP, which he helped found in 1990,[7] on November 4, 2004.

On November 19, 2004, Thapa and his followers opened a 'contact office' in Balutwar, Kathmandu, to organise a broad political conference and coordinate the construction of a new party.

Other prominent members of the committee were Kamal Thapa, Hari Bahadur Basnet, Sarvendra Nath Sukla and Renu Kumari Yadav.

[11][12] RJP had expressed differences with King Gyanendra after the February 1, 2005 coup, over issues like political appointments in the local administrations.

At the time, RJP tried to profile itself as a centrist party, in between positions advocating direct monarchical rule and republic.

[17] In November 2006, the Prajatantrik Nepal Party led by Keshar Bahadur Bista merged into RJP.

[23][24] After an agreement was reached between United Democratic Madhesi Front and the Government of Nepal on February 27, 2008, and the UDMF parties pledge to contest the CA polls, the RJP declared that it would participate as well.