King Laxmi Narsingha Malla built this temple in the sixteenth century. It is said to be constructed from the wood of single tree. It is located near the temple of Kumari. Indeed the city of Kathmandu derives its name from this temple.
Behind Kasthamandap, there is a small but a very important temple of Ashok Vinayak, also known as Kathmandu Ganesh or Maru Ganesh.