Republic Monument is another significant place of attraction that can be seen inside the palace museum complex. Situated on the eastern part of the palace compound, the republic monument was built in memory of all the known and unknown martyrs who sacrificed their lives in course of democratic movements in Nepal. The monument stands as a symbolic representation of the beginning of Federal Democratic Republic Nepal.

The upper part of the monument presents a relief map of the country, with four special pillars each one is dedicated to the heroes of republican movement, those who made ultimate sacrifice, those who disappeared, and those who got injured and became disabled.

A book-like stone art is also installed here as a symbolic representation of the Federal Republic constitution of Nepal. The Republic Monument also features a museum gallery with photographic exhibits chronicling Nepal's democratic movements during different periods of history.

The foundation stone of the monument was laid by the then Prime Minister Dr. Babu Ram Bhattarai on March 27, 2012. The Republic Monument was inaugurated by Rt. Honorable President of Federal Democratic Republic Nepal Mrs. Bidya Devi Bhandari on May 29, 2019 on the auspicious occasion of Republic Day