The main objective of my article is to demonstrate the complex issues of geopolitics and national identity in South Asia. Both are interrelated with each other and a political myth on national identity may owe its final shape to geopolitical constraints. These in turn may set limits to social revolutions that intend to transform the society of which the national identity is a vital part. Nepal with its strategic location between India and China and with its revolutionary transformation process is a good illustration of that interrelation. The "clash of political ideas" - which is materialized in the ideological opposition of a revolutionary republic versus a traditional kingdom - is a relevant part of the text. It is noteworthy however that the "clash" should be interpreted in the context of geopolitical strategies initiated by the two Asian superpowers who have their own conflicting interests in Nepal. The domestic strife has its regional dimensions that could be classified as a part of the New Great Game of the 21st century being played out by Beijing and Delhi.