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November 2005, the Seven Party Alliance (SPA) of parliamentary parties and the Communist Party of Nepal (Maoist) agreed on a historic and unprecedented 12-point memorandum of understanding (MOU) for peace and democracy. Nepalese from various walks of life and the international community regarded the MOU as an appropriate political response to the crisis that was developing in Nepal. Against the backdrop of the historical sufferings of the Nepalese people and the enormous human cost of the last ten years of violent conflict, the MOU, which proposes a peaceful transition through an elected constituent assembly, created an acceptable formula for a united movement for democracy. As per the 12-point MOU, the SPA called for a protest movement, and the Communist Party of Nepal (Maoist) supported it. This led to a countrywide uprising called the Loktantra Andolan that started in April 2006. All political forces including civil society and professional organizations actively galvanized the people. This resulted in massive and spontaneous demonstrations and rallies held across Nepal against King Gyanendra's autocratic rule.

The people's participation was so broad, momentous and pervasive that the king feared being overthrown.[citation needed] On 21 April 2006, King Gyanendra declared that "power would be returned to the people". This had little effect on the people, who continued to occupy the streets of Kathmandu and other towns, openly defying the daytime curfew. Finally King Gyanendra announced the reinstatement the House of Representatives, thereby conceding one of the major demands of the SPA, at midnight on 24 April 2006. Following this action the coalition of political forces decided to call off the protests.

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