[14][15] A major reshuffle took place on 25 December 2020 after several ministers resigned in protest of Oli's move to recommend the dissolution of the House of Representatives which was approved by the president, although later overturned by the Supreme Court.

[23] Oli became a minority prime minister on 13 May 2021 by president Bidya Devi Bhandari, as no opposition party formed a majority government or claimed it in time.

[26][27] Another major reshuffle took place on 4 June 2021, after the CPN (UML) formed a coalition with a faction of the People's Socialist Party, after negotiations awarded ten ministerial berths to the faction led by Mahantha Thakur and Rajendra Mahato.

[31] The Supreme Court, on 22 June 2021, stayed the cabinet expansion and reshuffle by Prime Minister Oli.

The petitioners claimed that a government formed under article 76 (3) of the constitution with a caretaker status cannot expand or reshuffle the cabinet.

[36] On 12 July 2021, the Supreme Court ruled that the president's decision to dissolve the House of Representatives on the recommendation of prime minister Oli was unconstitutional and ordered the appointment of Nepali Congress president Sher Bahadur Deuba as prime minister within 28 hours, after the opposition filed writs against the dissolution.

[37] President Bhandari appointed Deuba as the prime minister in accordance with Article 76 (5) of the Constitution of Nepal, and he was sworn in for a fifth term on 13 July 2021.