Dhakal started his political journey from 2035 BS after being involved in student politics. He became a central committee member of CPN-UML in 2075 BS. Dhakal was elected in the 2070 BS Constituent Assembly elections under a proportional representational system. He was re-elected from Morang-3 in 2074 BS.
He was Minister for Law, Justice and Parliamentary Affairs in 2075 BS and then served as Heath Minister in 2076 BS.