On 18 January 1992, Nepal Bhasa Academy organized a symposium of distinguished scholars, intellectuals, writers, artists and social workers of the Newar community to discuss a long-felt need for an authoritative academic institution to work systematically for the preservation and promotion of the Nepal Bhasa and cultural heritage of the Newars.
On 5 September 1992 the constitution of the Nepal Bhasa Academy was formally approved and an Academic Council with a maximum number of 75 members was formed. Then Nepal Bhasa Academy was established as a self-governing corporate body.