Nepal's seven-party alliance called off crippling pro-democracy protests today after King Gyanendra announced he was reinstating the dissolved parliament.
As hundreds of people cheered and danced on the streets, the parties said their first job would be to ensure Maoist insurgents fighting a decade-long rebellion joined the political mainstream.
A huge protest rally called for has been converted into a victory parade, and hundreds of thousands of people were expected on the streets of the capital Kathmandu later in the day.
Krishna Prasad Sitaula, spokesman for the Nepali Congress, the largest party in the alliance, said: "Today's planned protest has been converted into a victory rally. This will go down in history as a new example of how peaceful protests are held. This will determine the future of the country."
Life returned to normal in Kathmandu after almost three weeks of curfew, protests and closures in which 12 people have been killed and hundreds wounded. Many buses and taxis ran for the first time since April 6th, and mobile phone connections, cut at the height of the unrest on Saturday, were restored.
But riot police were still deployed on street corners and soldiers with automatic weapons were on patrol.
In a nod to the Maoist insurgents with whom the seven parties have a loose alliance, Mr Sitaula said work on an assembly to write a new constitution, the key demand of the rebels, would be the first priority.
"The main agenda of this reinstated parliament will be to hold elections to a constituent assembly."
Nepal's parliament has been dissolved since 2002, and King Gyanendra assumed absolute power last year, declaring a state of emergency and vowing to crush the escalating Maoist rebellion.
Speaking on television, the king said: "We, through this proclamation, reinstate the house of representatives which was dissolved on May 22nd, 2002", adding that the first session would be held on Friday.