The vehicle was heading to Bhotang in Sindhupalchok district, about 75 km east of Kathmandu, when the mishap happened.
The jeep fell some 250 metres from the road.
Those killed in the accident include two men, a woman and three children.
Five people died on the spot while the jeep driver who was seriously injured breathed his last during treatment at a local health post, police said.
The injured passengers have been brought to Kathmandu for further treatment.
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