Before 2069 B.S., Budhanilkantha Municipality did not have a community-based institution for higher education. As a result, many students were compelled to pursue further studies in private colleges after completing Grade 12, which often created financial and accessibility challenges for families in the area. This gap highlighted the urgent need for an affordable, locally accessible public institution of higher learning. The campus initially received affiliation from Tribhuvan University to offer undergraduate programs such as B.Ed. and BBS, laying a strong foundation for academic growth and community service.

From 2082 B.S., the institution has been officially operating as Kapan Campus, a Constituent Campus of Bagmati University. This transition represents a major milestone in the campus’s institutional development, strengthening academic governance, quality assurance, and long-term sustainability. Kapan Campus fosters a multicultural, inclusive, and co-educational learning environment, where diversity is respected and students are supported as responsible members of society. Today, the campus continues to grow as a trusted academic center in Budhanilkantha Municipality, committed to delivering accessible, quality higher education and preparing students for meaningful professional and social contributions.