After his bilateral talks with Nepalese Prime Minister Sushil Koirala at Prime Minister's Office in Singhadurbar, Modi headed to the Constituent Assembly building situated at Naya Baneshwor amid special security arrangements when he made the impromptu stop.
Modi waved to the crowd and shook hands with some of the spectators.
Modi's action also surprised his security personnel and pedestrians in Kathmandu as he got off his bullet-proof car and walked down the road to greet the spectators who had stood on both sides of the road.
While Modi stopped to interact with the local people in the market in Kathmandu, slogans of "Har Har Modi" were also raised.
During his Bhutan visit, Modi had made a similar impromptu halt to talk to local Bhutanese people while travelling from Thimphu to Paro to board his flight back home.
Modi later entered the Constituent Assembly building to meet Speaker Subas Chandra Nembang before addressing Nepal's Parliament.
In the evening, Modi attended a reception hosted by Indian Ambassador to Nepal Ranjit Rae at Hyatt Regency Hotel, where he is staying during his visit.
Modi then attended a dinner reception hosted by Koirala at Hotel Soaltee on the outskirts of Kathmandu.
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