In August 1996, Kathmandu University (K.U.) opened a Department of Music in Bhaktapur, where ethnomusicology (B.A. and M.A.) and practical music (North Indian classical and Nepalese local traditions) are taught to Nepalese and foreign students. The then German President, Dr. Roman Herzog, inaugurated the department during his state visit to Nepal on 29th November 1996. The academic courses are conducted by an experienced ethnomusicologist from Germany and lecturers from the U.S. and Nepal. Teaching staff for performance training includes local musicians and dancers. An exchange of academic teachers and students has been agreed upon and carried out between Kathmandu University and the School of Oriental and African Studies (SOAS), University of London. SOAS recognizes the exams passed at the Bhaktapur Department of Music for internal purposes. Presently, the K.U. Department of Music is the only university department in South Asia conducting full-fledged course in ethnomusicology. To date (November 2009), students from twenty-eight different countries have studied at the Bhaktapur department.

The aim of the K.U. Department of Music is to train competent musicians and ethnomusicologists to document, preserve, and work creatively with the endangered musical traditions of Nepal. As Bhaktapur is considered by many to be the capital of the performing arts, this traditional farmers' town is an ideal laboratory for students of ethnomusicology. The department is situated in an idyllic setting at a 19th century temple area (Shivalaya) at the periphery of Bhaktapur. The Shivalaya was built by the great-grandfather of the Dhaubhadel family, in order to acquire religious merit. This temple area has been transformed into the Department of Music with a library, digital sound recording studio, climatized sound archive, permanent exhibition of musical instruments, computer and video room, seminar room, and three class rooms and performance pavilion spread all over the large garden. A canteen provides lunch and tea. Bhaktapur offers a large number of lodges and private accommodation.