Nepal is a federal democratic republic that has undergone significant changes in its political system over the past few decades. Nepal's transition to democracy began in 1990 when a popular movement led by political parties succeeded in overthrowing the monarchy and establishing a constitutional monarchy with a parliamentary system of government.

However, in 2005, King Gyanendra took control of the government and suspended the constitution, leading to a decade-long civil war between the Maoist rebels and the government forces. The conflict came to an end in 2006 with the signing of the Comprehensive Peace Agreement, which paved the way for the establishment of a federal democratic republic.

The current constitution of Nepal was adopted in 2015, which established a federal system of government with three tiers of government: federal, provincial, and local. The president is the head of state, and the prime minister is the head of government. The parliament consists of two houses: the House of Representatives (Lower House) and the National Assembly (Upper House).

Nepal has a multi-party political system, and elections are held regularly. However, there have been some concerns about the functioning of democracy in Nepal, such as the concentration of power in the hands of a few political elites, corruption, and a lack of transparency in government decision-making.

Additionally, there have been some incidents of political instability in Nepal, including the dissolution of the House of Representatives by the prime minister in 2020, which sparked protests and was later overturned by the Supreme Court.