Nepal is due to become a republic and end 240 years of royal rule.
A newly-elected assembly is to meet in the capital, Kathmandu, with the tasks of abolishing the monarchy and preparing a new national constitution.
As the assembly was being sworn in on Tuesday a bomb explosion in the capital injured two people.
The assembly is huge and the ceremony, performed by an older member of the newly-elected body, saw 575 men and women being sworn in.
Many wore traditional clothing and used their mother tongues for the occasion in this ethnically mixed country.
Just 26 more members have yet to be nominated by the biggest parties.
Leave the palace
Nepal stands on the brink of huge change, says the BBC's Charles Haviland in the capital Kathmandu.
[The king] has no choice, but if he refuses to leave the palace we will use the law to force him out of there
Baburam Bhattarai
Maoist deputy leader
The assembly has been given the initial task of rubber-stamping the abolition of the monarchy.
Reports said King Gyanendra and Queen Komal were seen driving out of the royal palace on Tuesday afternoon, but it was not clear where they were going or for how long they would be gone.
Senior politicians have urged the monarch to leave the palace peacefully, but some have said force might be used if that does not happen.
"He has no choice, but if he refuses to leave the palace we will use the law to force him out of there," said Baburam Bhattarai, the deputy leader of the Maoists, Nepal's former rebels.
"Once a republic is declared the king will automatically lose his position and place in the palace," he told the Associated Press
Exactly how a republic will be voted in is still not clear.
Nepal's progress towards becoming the world's newest republic has been marred by bombs being planted in the capital for two days running this week.
On Tuesday, two explosive devices were left in a city centre park, but police said only one exploded, slightly injuring two people.
As before, pamphlets were found in the name of a little-known hardline Hindu group.
Some militant pro-Hindu and pro-royal factions are campaigning violently against Nepal's shedding of its royal - and its officially Hindu - status.
Nepal is set to become republic
Nepal is due to become a republic and end 240 years of royal rule.
A newly-elected assembly is to meet in the capital, Kathmandu, with the tasks of abolishing the monarchy and preparing a new national constitution.
As the assembly was being sworn in on Tuesday a bomb explosion in the capital injured two people.
The assembly is huge and the ceremony, performed by an older member of the newly-elected body, saw 575 men and women being sworn in.
Many wore traditional clothing and used their mother tongues for the occasion in this ethnically mixed country.
Just 26 more members have yet to be nominated by the biggest parties.
Leave the palace
Nepal stands on the brink of huge change, says the BBC's Charles Haviland in the capital Kathmandu.
[The king] has no choice, but if he refuses to leave the palace we will use the law to force him out of there
Baburam Bhattarai
Maoist deputy leader
The assembly has been given the initial task of rubber-stamping the abolition of the monarchy.
Reports said King Gyanendra and Queen Komal were seen driving out of the royal palace on Tuesday afternoon, but it was not clear where they were going or for how long they would be gone.
Senior politicians have urged the monarch to leave the palace peacefully, but some have said force might be used if that does not happen.
"He has no choice, but if he refuses to leave the palace we will use the law to force him out of there," said Baburam Bhattarai, the deputy leader of the Maoists, Nepal's former rebels.
"Once a republic is declared the king will automatically lose his position and place in the palace," he told the Associated Press
Exactly how a republic will be voted in is still not clear.
Nepal's progress towards becoming the world's newest republic has been marred by bombs being planted in the capital for two days running this week.
On Tuesday, two explosive devices were left in a city centre park, but police said only one exploded, slightly injuring two people.
As before, pamphlets were found in the name of a little-known hardline Hindu group.
Some militant pro-Hindu and pro-royal factions are campaigning violently against Nepal's shedding of its royal - and its officially Hindu - status.
