Pyuthan is a municipality located in the Pyuthan District within the Lumbini Province of Nepal. The municipality derives its name from the district itself and serves as both the administrative center and the primary market hub for the region.
The municipality was originally established on May 18, 2014, through the merger of several village development committees (VDCs), including Khaira, Dakha Kwadi, Bijaya Nagar, Bijuwar, Dharmawati, Maranthana, and Khalanga. In 2017, it underwent a restructuring process that involved adding the VDCs of Majhkot and Jumrikanda while reorganizing the existing structure into 10 new wards. Nayabajar Jumri and Bijuwar are recognized as the major markets within the municipality.