An indefinite curfew has been imposed in the Nepalese capital following violent protests against the killing of 12 Nepali hostages in Iraq.
Angry mobs in Kathmandu attacked a mosque, government offices and the offices of two Middle East airlines.
Many in Nepal are blaming the government for not doing enough to secure the release of the hostages.
Images have been shown on a website, apparently showing one man being beheaded and 11 being shot dead.
About 3.5% of Nepal's 27 million people are Muslim. Hindus make up 86% of the population and Buddhists 7.8%.
The news was received with anger and grief in Nepal with one official describing it as "one of the worst days" in his country's history.
of angry demonstrators took the streets of Kathmandu on Wednesday with the security forces struggling to control the situation.
Riot police used batons and teargas to push back an angry mob which attacked the Jama mosque in central Kathmandu.
"We want revenge," demonstrators shouted as they stormed the mosque which was empty at the time.
"Demonstrators entered the mosque, threw stones and partially damaged it," the Reuters news agency quoted police official Binod Singh as saying.
Protesters stoned the labour department building in Kathmandu, shattering windows and damaging equipment.
Government blamed
The government is being heavily criticised for doing little to free the hostages and there have been calls for the prime minister to step down.
The English language Kathmandu Post newspaper said the militants who had killed the hostages were simply "terrorists who have camouflaged themselves in the masks of Islam".
It said the government had failed to take concrete steps to secure the hostages' release.
The government denies the criticism and has condemned the incident as a "barbarian act of terrorism", and pressed the international community to hunt down the killers.
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