During Period of Rana there was no film industry in Nepal and Nepali film too. Filmmaking in Nepal started only after 1962. Before 1962, King Mahendra invited Hira Singh Khatri from Bollywood to Nepal and he made a documentary about 42nd birthday of King Mahendra. That was the first ever film made from Nepal. But, the first film in Nepali language was 'Satya Harishchandra' and its director was D.B.Pariyar which was made in India. In the past, to record songs a singer had to go to India. This film is made in India, technologies; musician, actor and actress were from India. The first feature film from Nepal was 'Aama', which was Black and White and made in 1965 AD. It was produced by His Majesty's Government of Nepal. In order to develop the film industry, the government established the Film Corporation. Nepali films became color in Panchayat period. In 1974, a board was formed for the development of film industry called as Royal Nepal Film Corporation. Between the years 1964-1971 three propaganda films were produced. In 1990, there was a political drastic change. In the beginning, Nepalese film industry produced quite a number of successful movies such as Basanti, Prem Pinda and Maithighar. Within three years of time, 150 films were made. Distribution was increased; market shares reached to its peak, cinema halls were increased. Post 1990, film industry expanded. If before 1990 1-10 films were made per year the number of films were 50 per year in post 1990’s. Nepali Film Caravan was nominated for the world's most prestigious Academy Awards as the best foreign language film and was produced jointly by Nepal and France.
There were 450 cinema halls out of which only hundreds are operating at present out of which only 11 are operating with permanent license, 38 with temporary and the rest are mobile or make-shift cinema houses. Nepalese movie industry had been facing serious competition from Indian movie industry. Now many music studios have established in Nepal although they are not of that high quality but India is still preferred. Nepali film makers had to hire cameraman, dance directors, make-up man from India, although now the trend is being changed. Before editing, dubbing and mixing were done in India but now newly developed Nepal Film Development Company Ltd. has all the technical facilities. In the film industry of Nepal started to make real and qualitative Nepali film. Kagbeni is one of the examples of it. In order to strengthen all aspects of the industry government had created a body Film Development Board on 30th June, 2000.