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, the 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 because of 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.
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 to discuss the situation.
Much like the surprising uprising in Sri Lanka in 2022 that forced the then president Gotabaya Rajapaksa to flee the country, analysts say India was caught off-guard by the developments in Nepal.
Any instability in the country is a cause of concern for India because of Nepal's strategic location. The Western Theatre Command of China sits right across Nepal. The route to the Indo-Gangetic plains comes straight through Nepal, noted Maj Gen (Retd) Ashok Mehta.
The unrest also has implications for the large Nepalese diaspora in India, where an estimated 3.5 million Nepalis live or work.
People travel between the two countries without a visa or passport under a 1950 treaty, and more than 32,000 Gurkha soldiers serve in the Indian army.
While a fragile sense of calm returned to Kathmandu, experts note that India must navigate widely spread anger among Nepalese protesters against all major political parties.
As relations with Pakistan are strained and Myanmar is embroiled in civil war, the developments in Nepal add further complexity to India's diplomatic landscape, compelling it to reconsider its approach towards the region.