"Felt extremely blessed on offering prayers at the Pashupatinath temple this morning," Modi said in a tweet.
The prime minister prayed at the temple, offered Rs.25 Lakh to build a 'dharamshala' in the temple complex and gave 2,500 kg of sandalwood.
Modi also tweeted a picture of his at the temple.
Modi is on a two-day visit to Nepal, a first by an Indian prime minister in 17 years. His visit ends Monday.