The landslide created a mud dam blocking the Sunkoshi river near Jure in the Sindhupalchowk district, about 60 kms (37 miles) northeast of Kathmandu, heightening fears of downstream floods that could reach as far as Bihar.
Home ministry officials said eight bodies have been recovered so far from the debris of houses and search and rescue operations were under way.
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The Sunkoshi river is popular for white water rafting, which is not normally done during the rainy season.
Bihar govt on alert
The danger of the flood looming in the Kosi belt along the Bihar-Nepal border, the state has put its personnel on alert, ordered evacuation and sought help from the army.
Bihar Disaster Management Department Principal Secretary said a 10-metre wave was expected to sweep down the Kosi river through Nepal.
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