Panauti’s Katha: History, Culture, and Spirituality

On July 19, 2025, I traveled with my BTTM 19th Batch students, who are very interested in culture and heritage, to explore Panauti, Namo Buddha, Dhulikhel, and Bhaktapur. According to our plan, we reached Panauti Bus Park around 10:30 AM. Personally, I was excited about visiting the Panauti Community Homestay, which I had been planning for a while.

Visit to Panauti Community Homestay

We drove via Kushadevi Road and arrived at the Community Homestay Office. There, we met Nisha Bahini, who kindly introduced us to Jyoti Ma’am. For almost 20 minutes, Jyoti Ma’am shared valuable information about the homestay. We were lucky to meet her, as she was on her way to Kathmandu. From her, we learned several interesting facts:

•       The Panauti Community Homestay was established 12 years ago.
•       It started with 8 houses and now has 15 houses providing homestay services.
•       There are 4 additional houses that serve guests when the main houses are full.
•       The homestay includes one traditional house made of stone and mud, which can accommodate guests at a time.
•       They have hosted 80+ guests at once during peak times.
  

The Community Homestay Office also has a museum and a cultural hall. The hall is used for cultural performances, especially when there are more than 10 guests. Jyoti Ma’am also explained their tour packages in detail. Before leaving, we exchanged business cards with the homestay office and thanked them for their warm hospitality and information. After finishing our visit to the community homestay, we moved forward to explore the heritage sites of Panauti.

Panauti: A City of History and Legends

The Story of Panauti

Surrounded by green hills and with a tightly packed settlement in the middle, Panauti looks like it is resting on the leaf of a sacred peepal tree when viewed from afar. Situated between two rivers, Punyamati and Roshi, this city feels like a hidden treasure kept in a secret place.

Panauti is both a part of the Kathmandu Valley and yet apart from it. If we take Sanga Pass as the boundary, it lies outside the valley. But if Banepa and Dhulikhel are considered the limits, Panauti is within the valley. Regardless of its placement, Panauti is an ancient Newar town deeply connected with the cultural history of the Kathmandu Valley.

The Names of Panauti Over Time

Located around 32 km east of Kathmandu, Panauti has changed its name many times throughout history. It was once called Purnamati, then known as Ashmapur, Punyavati, Panchal, and Palanti. Today, it is simply called Panauti.

Origins and Early History

It is believed that Panauti dates back to the Kirat period. Many nearby areas ‘such as Banepa, Nala, Panauti, Khopasi, and Sanga’ still have names derived from the Kirat language. Based on these references, historian Surya Prasad Lakaju wrote in his book Panauti that a large human settlement already existed here during the Kirat era.

In 2042 B.S., excavations in the Panauti-Khopasi area uncovered coins from the era of King Anshuverma. In 655 B.S., Licchavi King Shivadeva I set up a stone inscription in Khopasi. This inscription, found at the Vaishnav Temple of Khopasi, mentions that the locals had to pay white clay (Kamero) as tax, which was used for construction in Kailashkut palace.

The inscription also praises both King Shivadeva I and the powerful ruler Anshuverma. Historian Dhanavajra Bajracharya has also mentioned this record in his book Lichhavi Abhilekh (Lichhavi Inscriptions). Later, in 2066 B.S., excavations at Layaku Dabali in Panauti uncovered a copper coin from the late Licchavi period. One side of the coin had the word “Pashupati”, while the other side featured an image of a bull.

The Malla Era

After the Licchavi period ended, the Malla dynasty rose to power. In 1153 B.S., King Anandadev Malla of Bhaktapur expanded his kingdom and established seven villages with 700 houses, including Panauti, Banepa, Nala, Sanga, Shreekhandpur, Dhulikhel, and Chaukot. During the transition from the Licchavis to the Mallas, local feudal lords in places like Panauti ruled independently when the central rulers were weak, but they submitted when the kings were strong. Even during the Malla period, various feudal families influenced Panauti.

In the 14th and 15th centuries, the Ramvardhan family ruled Panauti as local kings. This family, including leaders like Anekram, Jyotiram, Jayasinghram, Madanram, and Shakti Singhram, played a significant role in the history of the Kathmandu Valley. Anekram, the son of Jyotiram, ruled Panauti as a powerful local leader from 1389 to 1412 B.S.. After his death, his son Jayasinghram became an independent ruler of Panauti and the surrounding villages. His influence can be seen in inscriptions, such as the one on the Sun God idol in Banepa.

The inscriptions at Indreshwor Mahadev Temple state that Jayasinghram donated golden horses, elephants, chariots, and even a golden wish-fulfilling tree to the Brahmins. He also renovated Indreshwor Temple and is believed to have rebuilt Pashupatinath Temple, establishing a new Shiva Linga there. In the 15th century, during the reign of King Yaksha Malla’s sons, Nepal was divided into three kingdoms: Kantipur, Lalitpur, and Bhaktapur. Panauti then became part of Bhaktapur Kingdom.

During the rule of Bhaktapur kings like Bhupatindra Malla, Ranjit Malla, and Queen Bishwalamki, many monasteries and temples were built in Panauti. In 1727 B.S., King Pratap Malla mixed water from Trivenighat of Panauti into the pond of Rani Pokhari in Kathmandu, marking the city’s cultural connection.

Panauti and Prithvi Narayan Shah

In 1820 B.S. (1763 A.D.), King Prithvi Narayan Shah sent his commander Ram Krishna Kunwar to Panauti while planning to conquer Bhaktapur. Historical letters mention Panauti as a key strategic location. That same year, in Sauna (July/August), Prithvi Narayan reached Kavre, setting up a base to attack Dhulikhel, Chaukot, Khadpu, and Panauti.

 

Legends of Panauti

One legend explains the origin of the name

A long time ago, a sage came to test the spiritual purity of Panauti. He planted a dried bamboo stick into a smooth stone near Shachi Tirtha (Triveni Ghat) and left on a pilgrimage for 12 years. When he returned, he saw that the bamboo had miraculously sprouted from the stone.

In the Newar language, “Pa” means bamboo, “Lwã” means stone, and “Ti” means holy site or pilgrimage place. Therefore, the place was named “Pa-Lwã-Ti,” meaning “the holy place where bamboo grew from a stone.” Over time, this name transformed into Palwanti and eventually Panauti.

Another belief about the name comes from the word “Palanti,” which means “Step Foot.” It is said that anyone who sets foot in Panauti will attain moksha (spiritual liberation) and a place in heaven after death.

Locals also say that the name “Palati” comes from the three rivers flowing through Panauti -  Padmavati, Lilavati, and Rudravati. By taking the first letter of Padmavati (Pa), the middle letter of Lilavati (La), and the last syllable of Rudravati (Ti), the name Palati was formed.

 Buddhist traditions also refer to this area as “Panchal Desh.” Historical inscriptions show that Panauti has also been called Purnamati, Panauti Gram, Purnavati, and Ashmapur during different periods.

Legend of Basuki Naag

There is a strong belief that Basuki Naag, the wealthiest and most powerful serpent deity (Naag), resides in Panauti. His dwelling is believed to be near Triveni Ghat, and locals consider him the protector of Panauti.  A famous story tells how Bandhudatta, a tantric from Kathmandu, once tried to capture Basuki Naag. He performed rituals to please the serpent god, and when Basuki appeared, Bandhudatta asked to see his largest, most powerful form. Basuki grew so big that his body circled the nearby Gorakhnath Hill three times, and his head touched the spire of Brahmayani Temple.

Then Bandhudatta cleverly asked Basuki to show how small he could become. Basuki agreed and shrank enough to enter Bandhudatta’s water pot (Kamandalu). As soon as Basuki entered, Bandhudatta sealed the pot and captured him. That night, a storm shook the town. Basuki tried everything to escape but failed. In desperation, he used his immense weight to flip stones along the Punyamati River, which is why many stones are still said to be overturned there.

Eventually, Bandhudatta brought Basuki to Patan and placed him inside the temple of Rato Machhindranath. To this day, people from Panauti are given special permission to worship Basuki Naag at that temple. Before leaving Panauti, Basuki cursed the town:

"May the people of Panauti never lack food, but may they also never become wealthy." 

Because of this, there is still a belief that pounding grain in a wooden mortar (Dhiki) in Panauti is not allowed, as it may disturb the resting serpent god.

 

Legend of Namo Buddha

Another famous legend linked to Panauti is about Namo Buddha, associated with compassion and sacrifice. Many years ago, a king named Maharath ruled this area. His youngest son, Prince Mahasattva, was known for his kindness and generosity. One day, while walking in the forest with his brothers, Mahasattva saw a starving tigress and her cubs.

Seeing their suffering, Mahasattva thought: "Life is often lost to disease, anger, or greed, but rarely is it sacrificed for a good cause. I will give my body to save these animals."

He quietly left his brothers, approached the tigress’s cave, and offered his own flesh to feed her. By the time his brothers found him, only his skeleton remained. This ultimate act of compassion transformed him into Bodhisattva, and a Chaitya (stupa) was built at the site, which is now revered as Namo Buddha. It is believed that Mahasattva was a past life of Lord Gautam Buddha himself, symbolizing compassion and selflessness. Every year, on Bhadra Krishna Trayodashi, a special festival is held at Panauti in his honor, making this a sacred site for Buddhists.

The remaining story will continue……

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