Mohanyal Rural Municipality is located at Kailali district of Sudur Pashim Province, Nepal. It was established in 2074 BS. It is situated at mountain area. It was formed by combining then Mohanyal. Pundain and Sugarkhal Village Development Committees and name was kept on then VDC Mohanyal. This Rural Municipality is surrounded by Surkhet district at east, Chure Rural Municipality at west, Doti and Surkhet districts at north and Ghodaghodi and Lamki Chuha Municipality and Bardgoriya Rural Municipality at south.

It covers 626.95 kilometer square area. It is least populated Local level unit of Kailali with population just 22,053 as per the census of 2011. Majority of land belongs to mountain region covered by forest. It is divided into seven wards. Agriculture, animal husbandry and foreign employment are major source of income here. Chhetri, Brahmin, Magar and Dalits are major ethnic groups residing in this Rural Municipality.

Chairperson Nawal Shingh Rawal and Vice-chairperson Puja Devi Budha Magar are representatives of this Rural Municipality. Its centre is Khimadi Village.