 The settlement was named after the Rana Prime Minister Bir Shamsher, thus acquiring the name Birgunj.Before the establishment of Birgunj, the main center of Parsa district was Alau, Nepal.In July 1959 From Sugauli King Rajendra Bikram Shah has a history of setting up a military camp in Alau of Parsa district.Birgunj was founded in 1897 by 11th Rana Prime Minister Bir Shamsher Jang Bahadur Rana; the ancient name was Gahawa.