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Under Regmi, the nation saw peaceful elections for the constituent assembly. In Septemberthe Maoists declared a three-month unilateral ceasefire to negotiate.
The new constitution of Nepal has changed Nepal practically into a federal democratic republic by making 7 unnamed states. The war ended in the Sugauli Treatyunder which Nepal ceded recently captured portions of Sikkim and lands in Terai as well as the right to recruit soldiers.
Thus began the reputation of Gurkhas as fierce and ruthless soldiers. Ram Baran Yadavthe first President of Nepal The newly elected Assembly met in Kathmandu on 28 Mayand, after a polling of constituent Assembly members, voted to form a new government,  with the monarchist Rastriya Prajatantra Partywhich had four members in the assembly, registering a dissenting note.
The constituent assembly was transformed into a legislative parliament by the then-chairman of that assembly.
On 24 April the dissolved House of Representatives was reinstated.