The following year, the department commenced three-year Bachelor of Fine Arts (BFA) in another building that provided a larger studio area, a small exhibition space and better natural lighting. The BFA course offered students to major in painting and sculpture, whilst introduced Graphic Design as a BFA course for the very first time in Nepal.

Keeping in tune with the changing times, this department modified its three-year BFA course format to four-years in the year 2005. Unfortunately, Mr. Warlow could not continue as the director of the department and the responsibilities were handed over to Mr. Sujan Chitrakar, who now runs the centre as Academic Program Coordinator. The department was re-baptized as Centre for Art and Design with an intention to provide different departments under its umbrella in future.

Along with Nepali students, the centre also facilitates international students in short termed courses in drawing, painting, sculpture, ceramics, photography etc. KUart also launched short termed courses in Fashion Design and Art in Education, with faculties invited from Germany and UK.

In the year 2007, Centre for Art and Design (KUart) shifted to a more serene and scenic location at the outskirt of Kathmandu, where it now runs four-year bachelor programs in Painting, Sculpture, Graphic Design, Extra South Asian Arts Studies and Art in Education. KUart is steadily developing and continually evolving to build strong international connection through established art institutes and organizations.