On 25 September 1768, he officially announced the creation of the Kingdom of Nepal and moved his capital from Gorkha to the city of Kathmandu.
The Kathmandu Valley, then called Nepal Mandala, alone contained three independent kingdoms: Kantipur, Lalitpur, and Bhadgaon.
The Malla kings of the valley engaged in incessant conflicts and skirmishes among themselves and had, at several instances, requested the intervention of Gorkha to settle their disputes.
Nuwakot marked the eastern boundary of the Gorkha Kingdom and was part of the trade route between Tibet and Kathmandu.
In the very year of his coronation, Prithvi Narayan Shah sent Gorkhali troops under Kaji Biraj Thapa Magar to attack Nuwakot.
Kalu Pande advised Prithvi Narayan Shah to raise a standing army by conscripting men from other regions.
A newly fortified Gorkhali force again attacked Nuwakot in 1744 from three sides and managed to capture the hill fort on September 26, 1744.
Prithvi Narayan Shah thus invited Tribikram Sen to the banks of the Trishuli river on the pretext of a friendly visit and then took him into custody.
Sensing danger, King Digbardhan Sen and his minister Kanak Singh Baniya of Makwanpur sent their families to safer grounds before they were encircled by the Gorkhalis, who launched an attack on 17 August 1762.
The battle lasted for around eight hours and while Makwanpur was annexed, King Digbardhan and Kanak Singh escaped to Hariharpur Gadhi.
[13] After occupying the Makwanpur, the Gorkhali forces planned to take Hariharpur Gadhi, a strategic fort on a mountain ridge of the Mahabharat range, also south of Kathmandu.
Mir Qasim, sought to gain loot and plunder from the invasion, as he was using lavish gifts to get on the East India Company's good side.
In December 1762, he sent around 3,500 troops under Gurgin Khan (also known as Khoja Gregory), an Armenian man who had helped train Mir Qasim's army, to launch an attack on Makwanpur, which had only recently been captured by the Gorkhalis.
Kalu Pande was killed in the battle while Prithvi Narayan himself narrowly escaped with his life into the surrounding hills disguised as a saint.
[27] On 29 August 1772, Ram Krishna crossed the Dudhkoshi river to invade the lands of King Karna Sen of Kirant and the Saptari region[23] with fellow commander Abhiman Singh Basnyat.
[30] King Prithvi Narayan Shah bestowed 22 pairs of Shirpau (special headgear) on Ram Krishna Kunwar in appreciation of his victory over the rulers of the Kirant region.
[34] The document dated Bikram Samvat 1833 Bhadra Vadi 3 Roj 6 (i.e. Friday 2 August 1776), shows that he had carried the title of Dewan along with Vamsharaj Pande.
[37][38] Historian Dilli Raman Regmi asserts that Sarbajit was chosen as Chief Kazi (equivalent to Prime Minister of Nepal).
[40] Prince Bahadur Shah confined his sister-in-law Queen Rajendra Laxmi on the charge of having illicit relation with Sarbajit Rana Magar[44] on 31 August 1778.
[47] Historian Bhadra Ratna Bajracharya asserts that it was actually Chautariya Daljit Shah who led the opposing group against Sarbajit Rana and Rajendra Laxmi.
1835 Bhadra Sudi 11 Roj 4 (1778 A.D.) to Narayan Malla and Vrajabasi Pande asserts the death of Sarbajit under misconduct and the appointment of Bahadur Shah as regent.
[36] The death of Sarbajit Rana Magar is considered to have marked the initiation of court conspiracies and massacres in the newly unified Kingdom of Nepal.
[43] Historian Baburam Acharya points that the sanctions against Queen Rajendra Laxmi under moral misconduct was a mistake of Bahadur Shah.
[51][52] In the special tribunal meeting at Bhandarkhal garden, east of Kathmandu Durbar, Swaroop Singh held Vamsharaj liable for letting the King of Parbat, Kirtibam Malla to run away in the battle a year ago.
The Chinese launched uphill attack during the daylight and failed to succeed due to strong counterattack with Khukuri at Nuwakot.
[58] The Chinese army suffered a major setback when they tried to cross a monsoon-flooded Betrawati, close to the Gorkhali palace in Nuwakot.