Nepal has become the third country in India's immediate neighbourhood to see a violent uprising topple its government in recent years.
Prime Minister KP Sharma Oli resigned after more than 20 people died in clashes with police during anti-government demonstrations triggered by a social media ban.
A nationwide curfew is in place, and the army is attempting to bring the situation under control after protesters stormed parliament and set fire to the homes of several politicians.
For many, scenes in Kathmandu were reminiscent of the turmoil that gripped Bangladesh last year and Sri Lanka in 2022.
Though Bangladesh and Sri Lanka are also India's close neighbours in South Asia, Delhi's relationship with Kathmandu is special due to historic people-to-people, economic, and strategic ties.
Nepal shares a largely open border of more than 1,750km (466 miles) with five Indian states; Uttarakhand, Uttar Pradesh, Sikkim, Bihar, and West Bengal.
Delhi is keenly watching developments across the border, with Indian Prime Minister Narendra Modi swiftly reacting to the unfolding events.
The violence in Nepal is heart-rending. I am anguished that many young people have lost their lives, Modi wrote in a post on X on Tuesday.
Stressing that stability, peace and prosperity of Nepal are of utmost importance, he appealed to all my brothers and sisters in Nepal to support peace.
Modi also chaired an emergency security meeting with his cabinet colleagues on Tuesday to discuss the situation.
The unrest also has implications for the large Nepalese diaspora in India. An estimated 3.5 million Nepalis work or live in India, but experts say the actual number could be much higher.
While a fragile sense of calm returned to Kathmandu on Wednesday, experts say India will have to walk a diplomatic tightrope, as there's widespread anger among Nepalese protesters at all three major political parties that have ruled the country.
Given the Himalayan nation's strategic location, both India and China are vying for influence in the country, leading to accusations that the two Asian giants are meddling in the internal affairs of Nepal.