The Maoists left the interim government on 18 September 2007, citing the non-fulfilment of their demands (which included declaration of a republic before the elections). They stated they would launch street protests in favour of a republic and to ensure the elections will be held, but keep to the ceasefire. The Prime Minister stated that declaring a republic through the interim parliament would lack legitimacy. According to some analysts, the Maoists are worried that they lack support and are trying to avoid suffering an embarrassing election defeat at the polls

On 26 September 2007, the Nepali Congress abandoned its tacit support for constitutional monarchy and called on the Constituent Assembly to call for the monarch's abdication.The nomination deadline was extended on 30 September 2007 upon the request of the Seven Party Alliance.
The United Nations Security Council on 26 October 2007 called for the election to be held before the end of 2007.
An agreement with the United Democratic Madhesi Front‎ was reached on 28 February 2008, thus ending their general strike. The agreement also included a provision increasing the proportion of seats reserved for the Madhesi minority from 20% to 30%.Furthermore, the parties were allowed to file for the election with an additional deadline set; the constituent parties of the United Madhesi Democratic Front (Madhesi Jana Adhikar Forum, Tarai-Madhes Loktantrik Party, Sadbhavana Party) did so, as well as some others (including the Anandisingh Devi-led NSP(A), Nepal Samyabadi Party, Rastriya Janashakti Party – who had stated they would boycott the election unless the Madhesi issue was resolved –, Nawa Janabadi Morcha, Nepal Rastriya Janabhavana Party, Rastriya Bikas Party and Rastrabadi Yuba Morcha)