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Nepali Literature (Nepali: नेपाली साहित्य) refers to literature written in Nepali language, not necessarily written by Nepali nationals nor all the literature written in Nepal. There are many prominient writers of Nepali literature from other countries, especially from India like Parijat also there is a diversity of languages spoken in Nepal like Maithali, Bhojpuri, Nepal Bhasa etc.

Nepali language evolved from Sanskrit and it is difficult to state the ancient history of Nepali literature because most scholars wrote in Sanskrit especially religious literature. However Nepali literature can be roughly divided into five periods.

Nepali literature certainly existed in oral and folklore forms for hundreds of years. There exists no evidence of a published literary work in Nepali language before Bhanubhakta, however.

Most, if not all, Nepali language speakers honor Bhanubhakta as the "ADIKAVI" (literally meaning 'first poet') of the Nepali language. Bhanubhakta's single most important contribution to Nepali literature is probably his translation of the holy Ramayana into Nepali language. Bhanubhakta wrote the Ramayana in metric form, using meters used in Sanskrit.

Bhanubhakta wrote original poems on diverse subjects ranging from family morals advocacy to satire of bureaucratic red tape and poor conditions of prisoners.

Motiram Bhatta is the figure who revived the legacy of Bhanubhakta and publicized the contributions of the latter. Motiram played such a fundamental role in the legacy of Bhanubhakta that some allege that Bhanubhakta was just a fabrication of Motiram's mind.

A very prolific time despite lack of freedom of expression, independent magazine "Sharada" was the only print medium available for the publication of Nepali literature. Short stories had Laxmi Prasad Devkota, Guru Prasad Mainali, and Bishweshwar Prasad Koirala as the recognized trident force.

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