The article discusses the Newars, who are the traditional inhabitants of the Kathmandu Valley and are 5.6 percent of the total population of Nepal in 1991. The article traces the origin of the Newars. It reviews the historical background of Newar identity along with the Nepali bhasa, which did not gain much status in spite of the political changes of 1951. The article studies Newar in the modern state of Nepal tracing the historical background of Newar. It discusses the formation of the association of Newar speakers called Nepal bhasa mamkah khalah. It also discusses the state of Newar after the 1990 revolution in Nepal. The author argues that, if the right of autonomy to nationalities in Nepal is accomplished, Newars, the indigenous population, are at the most favorable place as the major inhabitants of the Kathmandu Valley. (Rajeev Ranjan Singh 2006-10-25)