Butwal (), officially Butwal Sub-Metropolitan City (), previously known as Khasyauli (Nepali: खस्यौली), is a sub-metropolitan city and economic hub in Lumbini Province in West Nepal. As of 2021, Butwal has a city population of 195,054.
The city is one of the tetra-cities of rapidly growing Butwal-Tilottama-Bhairahawa-Devdaha urban agglomeration primarily based on the Siddhartha Highway in West Nepal with a total urban agglomerated population of 4,74,541. It is one of the fastest-growing cities in Nepal for health, education, construction, communication, trade, and banking sectors. It has highway connections to the Indian border at Sunauli and to the hilly towns in Tansen and Pokhara valley, and holds the title of being "The Best City in Nepal" five times in a row.
Geographically, Butwal is at the intersection of Nepal's two different National Highways, Mahendra Highway and Siddhartha Highway. It connects western Nepal with the capital Kathmandu through the highway and air links (via Gautam Buddha International Airport at Siddharthanagar). The city stands beside the bank of Tinau River, and at the northern edge of the Terai plain below the Siwalik Hills. Its name, Butwal was derived from Batauli Bazaar, the town's oldest residential area which is located on the western bank of the Tinau River.
Butwal was officially declared as a sub-metropolitan city on 2 December 2014 AD by combining two neighboring VDCs Motipur and Semlar. The sub-metropolitan city is currently headed by Nepali Congress leader Khel Raj Pandey.
History
Prehistory Fossils of ancient hominoids Ramapithecus were found near the Tinau (Tilottama) River, also known as paari Butwal, as early as 1932, including a 10.1-million-year-old tooth.
Medieval history In medieval time Butwal was known as Khasauli as it was believed to be established by Khas king. Later after the collapse of the Khasa empire it was ruled by the Sen kings of Palpa when it developed as a trading point between hilly people and plain people. In the 17th century Palpa with Butwal was annexed by Gorkha Empire. Butwal was also a place where a major battle of the Anglo-Nepalese war was fought i.e. Battle of Jitgadi Fort where the Gorkha army led by Ujir Singh Thapa beat the British forces.
Modern history
The area was a loose settlement that acted as a trading post between the hilly districts of the Lumbini zone and the Indian plains. Thus, historically Butwal connected Nepali Pahari people with their Indian neighbors. As the British East India Company annexed Awadh from its hereditary rulers while the Shah Dynasty attempted to annex the Terai, Butwal became one of the bones of contention leading to the Gurkha War 1814–16 AD.
When King Tribhuvan fled to India in 1950 during the revolt against the Rana dynasty he traveled through Butwal. Then it was little more than a village on the western bank of Tilottama River (also known as Tinau).
Butwal is a relatively newly urbanized area, emerging and growing rapidly only since 1960 AD. With the completion of the Siddhartha Highway (H10) in 1968 AD, starting from the border at Sunauli through Butwal to Pokhara and then in1990s Mahendra Highway(H01) across the full east–west expanse of Nepal's Terai. Butwal has made tremendous progress in the country.
Today
Demographics
The population of Butwal is 91,733 (census 2015 AD), according to the present stage the population is rapidly increasing with around 150,000 and above and consists of people of mixed groups and castes; these include Pahari immigrants from nearby hill districts especially Palpa, Arghakhanchi, Parbat, Gulmi, Syangja and also local people from Terai origin.
The population distribution in different wards in 2011 was as follows: Ward No. Households Population Male Female 1205980489491 21891053520522 32401337664673 41491648733533134 530391084254765366 62,3689,6034,9954,608 7669320217251477 81,5986,7873,4703,317 926311059750195578 1031751194258566086 112445917047234447 12111424361209222269 137258281931383414359 141566654231013441 151674736634913875 16778356616401926 17**************** 18**************** 19**************** 20**************** 21**************** 22**************** Total296621184625880859654
Caste and Ethnic groups
The largest single caste and ethnic groups in butwal is Hill Brahman, who makes 30% of the population, Magar with 19% comes to second place, Other ethnic groups in butwal includes the Chhetri (14%),Newar (8%), Tharu (7%), and others various ethnic groups makes(23%) of the population.
+ Broad Caste and Ethnicity category (2011 Census) Broad Ethnic Category Sub Category Linguistic Family Population PercentageKhas Aryan (Pahari Caste Groups) Khas Brahmin, Chhetri, Kami, Thakuri, Damai Sarki, Sanyasi/Dasnami Indo-Aryan 53.9% Janajati (Pahari Tribal Groups) Magar, Tamang, Gurung, Sherpa, Rai, Limbu etc. Sino-Tibetan 24.1% Newar (Kathmandu Valley Caste Groups) Newari Brahmin, Shrestha, Tamrakar, Newar Buddhist, Maharjan, Rajkarnikar etc. Indo-Aryan And Sino-Tibetan 7.6% Adibasi (Terai Indigenous Groups) Tharu, Rajbanshi, Tajpuriya etc. Indo-Aryan And Sino-Tibetan 6.6% Madeshi (Terai Caste Groups) Yadav, Brahmins, Chamar, Kushwaha, Musahar, Kurmi, Dhanuk etc. Indo-Aryan 2.4% Muslim - Indo-Aryan 2.2% Others - - 1.5%
Languages
At the time of the 2011 Census of Nepal, 73% of the population in the district spoke Nepali, 8% Magar, 5% Tharu,5% Newari, and 9% spoke other languages as their first language.
Economy Butwal is mostly a commercial and trading city, an upcoming link city for the nearby tourist spots. The GDP of Butwal was about US$1 billion in 2018, making it one of the major cities in Nepal. The economy of Butwal centers around trade, services, and industries. The old trading spots are Traffic Chowk, BP Chowk, Amarpath, Raj Margh Chaurah, and Nepalgunj Road. Besides modern shopping, a traditional form of the market called Haat Bazar similar to greengrocer runs twice a week on Wednesdays and Saturdays. It has the second largest vegetable market in the country called Butwal Sabji Mandi in local terms. All kinds of traders, farmers, and entrepreneurs sell goods and vegetables directly to retail & wholesale customers in a busy market setup.
Service aspects of the economy are mainly centered on banking, education, transportation, health sectors and logistics. Butwal has emerged as a major logistics hub in Nepal. Thus, increasing numbers of people are involved in these sectors for their jobs. The Hotel industry is one example of this, as Hyatt Hotels opened a location located at the intersection of the Mahendra and Siddhartha highways. This takes the city from a transit city into a commercial hub, paving other worldwide businesses to locate here.Online, T. H. T. “Hyatt Place Butwal Enters Market as City’s First International Five-Star Hotel.” Himalayan Times, January 13, 2026. http://global.factiva.com/redir/default.aspx?P=sa&an=ATHIMT0020260119em1d00009&cat=a&ep=ASE.
With the growing infrastructure of the internet, e-marketing has been on the rise in small and medium-sized businesses. A study shows that 98% of respondents said they have used social media as an e-marketing tool in their business. This shows the growing economy in this region due to social media and the widespread use of internet access.Rana, Bikash, Narayan Prasad Dhakal, and Prakash G.c. “Implementation of E-Marketing in the Restaurant Sector in Butwal Sub-Metropolitan City, Butwal, Nepal.” Kalika Journal of Multidisciplinary Studies 7, no. 1 (2025): 102–16. https://doi.org/10.3126/kjms.v7i1.86438.
Butwal is also a connecting city between nearby tourist towns of Tansen, Kapilvastu, and Lumbini. It is the gateway to nearby cities of Sunwal, Pokhara, and Bharatpur. It is also a busy land route to enter Nepal from India for tourists and others. Thus, Butwal is witnessing huge investments in the hospitality sector as well. To boost up tourism and MICE opportunities, the government plans to set up an international conference center at Ramnagar in Butwal. All these developments hint towards a large economic potential for the development of the region.
One recent development in this region is the Lumbini Cable Car, connecting the Rupandehi and Palpa districts. This has been a symbol of tourism has it has allowed access to other temples in the region where it wasn't accessible before. With the rise of tourism, the city's economy has risen in recent years.Bhandari, Krishna. The Role of the Lumbini Cable Car in Promoting Tourism in Butwal. no. 1 (September 2025). https://doi.org/10.47772/IJRISS.2025.908000219.
The private commerce and trade in Butwal are united under the umbrella of the Butwal Chamber of Commerce & Industry (BuCCI). Audhyogig Byapar Mela-Butwal is an industrial exhibition held in Butwal. This exhibition is organized annually in the month of Poush (generally December–January) and is one of the largest of its kind in Nepal.
Health
Butwal is home to Lumbini Provincial Hospital, one of the oldest hospitals in this region, which is considered a crucial resource for healthcare to poor citizens who cannot afford private hospitals. Originally established by Chandra Sumsher, the present hospital came in operation in with 50 beds. Patients from far-western regions and hilly regions to the north including Palpa, Gulmi, Arghakhanchi come to seek specialized care at different hospitals in the city.
Transport
This city dominates any other city in terms of the number of bus services in Nepal. Until 2003, most of the fleet was older large buses; since then operators have added newer minibuses popularly called micro. Older jeeps are used to take people to nearby hilly regions. Rickshaws are used for short-distance urban transport. Motorcycles are a common means of personal transportation around town. The number registered has increased from 1,200 in 1999 to 80,000 in 2008.
Nearly 100 buses depart everyday to Kathmandu from Butwal Bus Terminal. Besides the capital Kathmandu, the bus services are also frequently available to other major cities of Pokhara, Dharan, Kakarbhitta, Janakpur, Birgunj, Hetauda, Bharatpur, Tansen, Siddharthanagar, Dang, Nepalgunj, Dhangadi, and Mahendranagar.
Education Butwal is set to be an educational hub in the Rupandehi district. The literacy rate in the city is considered to be high. It has held the record for Nepal Top students in SLC as well as the HSEB examination numerous time
Butwal Bahumukhi Campus, Golpark Eden English Boarding School, Naharpur Kanti Higher Secondary School, Haatbazar Line Butwal Technical Institute, Golpark A study conducted showed that 40.8% of the people have an undergraduate degree in the city, while 30.4 percent up the people have up to secondary education (grade 10). And another 14.8% of the people hold a postgraduate degree.Devkota, Chiranjivi. “Age, Education, and Gender in Employment: A Case Study of Butwal Sub-Metropolitan City, Nepal.” Rural Development Journal 5, no. 1 (2025): 47–61. https://doi.org/10.3126/rdj.v5i1.75148.
Places of interest Devdaha - A municipality in Rupandehi District of Nepal, the ancient capital of Koliya Kingdom, located 7 km east of Lumbini and east of Butwal and shares a border with Nawalparasi district on the east side. It is identified as the maternal home of Queen Mayadevi, Prajapati Gautami and Princess Yasodhara. Shitalnagar Khairani, Bhawanipur, Bairimai, Kan yamai, Khayardanda are some sites for visitors. Gajedi Taal - A lake located about 21 km west of Butwal. Lausha village of Gajedi VDC. A few hillocks and landscapes make it more artistic and adventurous. It is well known as a spot for picnics, gatherings, and boating in the lake. Jitgadi - A fortress during Angol Nepal war, Narayan temple built by (1864 B.S.) Hanuman temple and Shivalaya of Hanumagngadhi, Jalabinayak M9ehadev temple, Narayan Temple, Siddababa temple, Nuwakot, etc. are centers of attraction in Butwal.