Through 2005 and 2006, the HD Centre adjusted and fine-tuned its approach to the parties and the region in response to the changing political environment in Nepal. This included regular meetings with the leadership of the parties to the conflict, constantly identifying or creating opportunities for engagement between them; while also seeking ways to ensure the political support of non-armed elements of Nepalese society and other interested parties.

In 2004, the HD Centre opened a confidential track of dialogue between the Royal Palace and the top leadership of the CPN (M). It sought, at the request of the CPN (M), to convene a meeting between King Gyanendra and Pushpa Kamal Dahal (‘Prachanda'), the CPN (M) leader. The HD Centre met regularly with representatives of both sides to set up such a meeting but the steadily deteriorating relations between them put paid to this initiative. This period was capped by the declaration of a state of emergency by King Gyanendra on 1 February 2005.

The HD Centre provided negotiation and technical support to the Government of Nepal and the Communist Party of Nepal (Maoist) during their public negotiations from January to August 2003. The HD Centre also worked closely with the National Facilitators to the talks and assisted in the establishment of the Peace Talks Coordination Secretariats in Kathmandu.

The HD Centre met with representatives of the Government of Nepal for the first time in 2000. Later the same year, it met with the Communist Party of Nepal (Maoist).