Bandipur is located at 27.56 N, 84.25 E and an elevation of 1030m on a mountain saddle (Mahabharat range) approximately 700m above the Marsyangdi River Valley, 143 km to the west of Kathmandu and 80 km to the east of Pokhara. Since 1998 it is connected by an 8 km access road from Dumre (Prithvi Highway).. The mountain saddle, just 200m long, is barely wide enough to accommodate the main street lined by 2 –3 storey buildings on either side. At the backsides of these houses the mountainsides steeply descend and the gardens are only accessible by stairs.

Bandipur was established as a funneling point of trade by Newar traders from Bhaktapur in the Kathmandu valley after it had been conquered in 1768 by Prithvi Narayan Shah. They took advantage of its malaria free location to develop it into an important stop along the India-Tibet trade route. With them they brought their cultural heritage and architecture which basically has remained unchanged to this day. Formerly a Magar village, Bandipur today is settled by a variety of Nepali ethnicities with different beliefs: the Bahuns, the Chhetris, the Newars, the Damais, Kamis, Sarkis, Kasais, the Magars and Gurungs.