After the fall of the Lichchhavis came the Malla period during which the foundation of the city of Kantipur (later Kathmandu) was laid. The early Malla rule started with Ari Malla in the 12th century and over the next two centuries grew into a large empire before disintegrating into small principalities which later became known as the Baisi (i.e. the twenty two principalities). This was more or less coincidental with the emergence of the Chaubisi (i.e. twenty four principalities). The history of these principalities remains shrouded up until the time when they joined other kingdoms, both large and small, to form the unified Kingdom of Nepal.

Jayasthiti Malla, with whom commences the later Malla period in the Kathmandu Valley, reigned towards the end of the 14th century. Though his rule was rather short, his place among the rulers in the Valley is eminent for the various social and economic reforms such as the 'Sanskritization' of the Valley people, new methods of land measurement and allocation etc. Yakshya Malla, the grandson of Jayasthiti Malla, ruled the Kathmandu Valley until almost the end of the 15th century. After his demise, the Valley was divided into three independent Valley kingdoms -- Kathmandu, Bhaktapur and Patan -- in about 1484 A.D. This division led the Malla rulers into internecine wars for territorial and commercial gains. Mutually debilitating wars gradually weakened them and by the time of King Prithvi Narayan Shah’s invasion of the Valley, they had by themselves reached the brink of political extinction. The last rulers were Jaya Prakash Malla, Tej Narsingh Malla and Ranjit Malla of Kathmandu, Patan and Bhaktapur respectively.

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