Contemporary course of Nepali politics substantially found a new direction after Comprehensive Peace Accord between the government and the rebel on November 21, 2006. The first constituent assembly was formed on May 28, 2008 in order to institutionalize the agenda of social change the rebels has long dreamed for the restructuring of the nation; however, the assembly could not provide the nation with the constitution in its tenure that ended on May 28, 2012. This paper examines the historical realities and construction of self in the most complicated juncture in Nepali history through analysis of Yug Pathak’s Urgenko Ghoda (2009), Samrat Upadhyay’s The Buddha’s Orphan’s (2010), Manjushree Thapa Seasons of Flight (2010), Buddhi Sagar’s Karnali Blues (2010), and Narayan Wagle’s Mayur Times (2010). These literary observations picture the complexities of the time in a way that historical narratives fail to record in that literature moves deep down the socio-political reality to find the aspirations of the people for change or the impact of the change on their subjectivity. In the historical backdrop of institutionalizing change, how does Nepali literature embed in it the contemporary spirit of demand of change and inability of the nation to address the spirit of the time? Through new historicist lens of interpretation, the paper seeks to identify the nature of contemporary spirit in the first decade of the present century, thereby linking the ethos as present in Nepali fictions of the turn of the decade.