Mustang Region, was once an independent kingdom, although closely tied by language and culture to Tibet. From the 15th century to the 17th century, its strategic location granted Mustang control over the trade between the Himalayas and India. At the end of the 18th century the kingdom was annexed by Nepal and became a dependency of the Kingdom of Nepal since 1795.
Though still recognized by many Mustang residents, the monarchy ceased to exist on October 7, 2008, by order of the Government of Nepal. The last official and later unofficial king (raja or gyelpo) was Jigme Dorje Palbar Bista (1930–2016), who traced his lineage directly back to Ame Pal, the warrior who founded this Buddhist kingdom in 1380. Ame Pal oversaw the founding and building of much of the Lo and Mustang capital of Lo Manthang, a walled city surprisingly little changed in appearance from that time period.
Mustang Region, Upper Mustang is on an ancient trade route between Nepal and Tibet exploiting the lowest 4,660-metre (15,300 ft) pass Kora La through the Himalaya west of Sikkim. This route remained in use until China’s annexation of Tibet in 1950.
Mechanized access inside Nepal began with the opening of an airstrip at Jomsom at the approximate boundary between the southern Thak and northern Lo sections of the valley, which was in operation by the 1960s.
Foreign visitors have been allowed to the region since 1992, but tourism to Upper Mustang is regulated. Foreigners need to obtain a special permit to enter, costing US$50 per day per person. Most tourists travel by foot over largely the same trade route used in the 15th century. Over a thousand western trekkers now visit each year, with over 2,000 in 2008. August and October are the peak visiting months. On August 27, 2010, local youth leaders in Mustang threatened to bar tourists beginning October 1, 2010 due to the refusal of the Nepalese government to provide any of the $50 per day fee to the local economy.