Woodwork in Nepal has been flourishing since the early years of the Licchavi period (300-879 AD), though the remains of this work have not been recovered. There are no physical monuments remaining from this era in Nepal to prove their creation except for its being mentioned in documentaries. A Chinese traveler Wang Hsuan tse, who has described Licchavi kingdom in his travel log, has clearly mentioned the beautiful woodcrafts, wood sculptures, and decorations used by the Licchavis.
Woodwork was kept within the bourgeoisie during the transition period (879-1200). Though there are not any remains of the woodcraft from this time, the beauty of these woodworks is documented in many references to those days. Most of the original woodworks were destroyed during disasters such as fires, earthquakes, and foreign invasions and then rebuilt. One of such wooden monument, a traditional architectural site named Kasthamandapa a wooden mansion near Hanuman Dhoka, Kathmandu, still stands. Kasthamandapa was built before 1143 as a shelter for travelers in the trade route. It must have been rebuilt many times during the following years, but the present state strongly indicates what the first Kasthamanadapa must have looked like. The woodwork and carvings show the advancement of the woodcraft during the transition period. The indications from this site are that it would have taken a long time for such skills in the crafts and woodwork to have generated. Therefore, it must have been an ancient craft that was carefully practiced even before the transition period. The archives of Gopalaraja Vamsavali mention that Yodyam temple built by King Somesvaradeva was beautifully decorated with woodwork. Very little of the woodwork of this period could have survived until now but some of the ancient woodwork that are found are dated to be from the Malla period (thirteenth to eighteenth century).
From the start of the Malla period woodcraft along with architecture started to thrive and reached its pinnacle when the Valley was divided into three Kingdoms. As the three kings rivaled each other to improve the magnificence of the country, more beautiful crafts were created to outdo the others. Most of the woodwork and wood sculpture adjunct to architecture in different forms are from the Malla period. For example, King Pratap Malla of Kathmandu, being fond of the Viswarupa of Lord Vishnu, had it created in wood and placed it over the Hanuman Dhoka in his palace. These crafts have survived many calamities or have been quickly reconstructed after their destruction. Each of the three kingdoms have their own Durbar Square, which were the most extensively decorated of all places in the kingdoms and each had a temple for Goddess Taleju erected as she was the personal deity of the kings.
The wooden artifacts of those days are usually sculptures of deities, demons, and animals, tudals (small columns to support overhanging roof but exclusively decorated), carved and lattice windows revealing intricate designs and peacocks, and doors, pillars as well as others. The woodwork in Kathmandu seems independent from outside influences except for the fact that the designs of these woodworks were essentially based on Holy Scripture, stylized mythical structures, related to the paintings in different texts, or conventional designs such as curves, lotuses, flowers, and fire. Some of the ancient wooden sculptures found are (a) Vasundhara, wife of Jambhala, god of Wealth, fifteenth century, Bhaktapur Museum; (b) Dancing girl dressed as a queen, fifteenth century, Bhaktapur Museum; (c) Gnome like being, or Yaksha, seventeenth century, Bhaktapur Museum; (d) Ganesh, seventeenth century, Bhaktapur Museum;(e) spinning wheel, eighteenth century, framework of carved wood, Nepal Museum, Kathmandu. Some of the woodwork used at architectural sites during Malla period are: (a) latticed windows (b) peacock window, Bhaktapur, (c) tudals at different palaces (d) decorated pillars (e) doors.
During and after the Malla period, the houses built in Kathmandu used wood as a very important constructing material. Wood was extensively used for doors, windows, pillars, and tudals. The woodwork in Kathmandu is more prominent in these construction materials than in wooden idols. Sometimes faces were carved on wood and hammered on metal plate to form an image on the metal. For example the big metal image of Swet Bhairav offered by Rana Bahadur Shah near Hanuman Dhoka was produced this way. As stone and metal craftsmen, likewise woodworkers also have their workshop at the ground floor of their houses. This working system helped the generations to carry on with their ancestral skills. Wood artistry can be seen in almost all traditional houses, temples, and shelter houses built with ancient architecture around the Valley. This shows how enthusiastic and skilled people were in woodcraft. Even during the successive Shah and Rana regime, these old traditions were preserved and can still be seen today.