The cabinet size has reached nine with the inclusion of the new ministers from two fringe parties.
Those appointed in the council of ministers include Jayadev Joshi from CPN (United) and Deepak Bohora and Bikram Pandey from Rastriya Prajatantra Party. They however have not been given any portfolio.
On Thursday, Prachanda had assumed office for his second term as prime minister.
The prime minister also administered oath of office and secrecy to the newly-appointed ministers.
