2002

• The United States Congress approves US$12 million to train Royal Nepal Army officers and supply 5,000 M16 rifles.
• May: Peace talks collapse.
• May: Large battle fought between Army and Maoist forces at Lisne Lekh along boundary between Pyuthan and Rolpa districts.
• 11 May: A photograph is discovered by Nepal government soldiers in western Nepal. The photograph depicts Nepal's Maoist rebel leaders Baburam Bhattarai, Hisila Yami, Ram Bahadur Thapa (alias Badal), and Pushpa Kamal Dahal (alias Prachanda).
• 22 May: King Gyanendra, acting on the advice of Prime Minister Sher Bahadur Deuba, dissolves Parliament and orders new elections. The reason given for the dissolution is opposition to the state of emergency.
• 11 July: Information leaks out that the Belgian weapon manufacturer FN Herstal is allowed to deliver 5,500 M249 Minimi rifles to the Nepali monarchy, a decision made by all coalition parties. Minister of External Affairs Louis Michel speaks of "a country in a pluralistic democracy."
• 4 October: King Gyanendra deposes Prime Minister Deuba and the entire Council of Ministers, assumes executive power, and cancels the elections for the dissolved House of Representatives, which had been scheduled for 11 November.
• 11 October: King Gyanendra appoints Lokendra Bahadur Chand as Prime Minister.