Move marks effective end to political deadlock that has left Himalayan nation without premier for seven months.
Nepal’s Maoist Party has agreed to join a coalition government, ending a month-long deadlock.
On Friday, Prime Minister Jhalnath Khanal appointed four Maoists to his cabinet.
Nepal is still struggling to recover from a bloody decade-long civil war between the Maoists and the state, which ended after a popular uprising in 2006.
In April that year, hundreds of thousands of people joined mass rallies, and in 19 days they succeeded in toppling the royal government.
But five years and four prime ministers on, people have started to question the success of the revolution.
Al Jazeera’s Subina Shrestha reports from the capital, Kathmandu.