The Rana rulers of Nepal brought the fabric into Nepal some 200 years back. In 1950, Ganesh Man Maharjan brought the weaving of Dhaka fabric from India to Palpa. Now the Dhaka cloth that you find in Nepal is weaved in Palpa, and not imported from Dhaka. Thus, it is also called Palpali Dhaka Topi since it is manufactured in the Palpa district of Western Nepal.
The Dhaka topi or Nepali Dhaka Topi is a part of the Nepalese national dress and a symbol of Nepalese nationality. Dhaka Topi got its name from the fabric that was imported from Dhaka in Bangladesh. Although these materials are no longer brought in from Dhaka, old shawls are still cut to make this topis that are appreciated for their rarity and history.
Nepali topi or Dhaka Topi has been adorning Nepali heads for generations. This unusually cut piece of clothing is a way of life for many older people. Even youngsters find it important to adopt a topi on formal occasions.
There also exists Bhadgaule cap, named after Bhadgau (modern-day Bhaktapur). Unlike the colorful Dhaka Topi, this one is black and was used in the Newar community before gaining popularity.
Read more about this Dhaka topi here -> Dhaka Topi and Fabric