Among all the Sanskrit story narratives available in the vast archive of textual collections in the Kathmandu Valley, Nepal, certain Buddhist tales among them found special provenance in the Mahāyāna culture of the Newars, the indigenous inhabitants of this surviving oasis of later Indic Hindu-Buddhist civilization. This paper will examine how two stories, the Sṛṇgabheri Avadāna and the Siṃhalasārthabāhu Avadāna, have been domesticated into the local religious field and adopted with special meaning for subgroups in the local society. The former recounts the consecutive, linked lives of a husband and wife, in a story of karmic retribution and reunion, a narrative that has a role in contemporary Buddhist widow mourning rites at the major stūpa in Nepal, Svayambhu. The latter, among the most popular jātaka narratives in the Buddhist world, relates the fate of a group of Buddhist merchants who are shipwrecked and captured by cannibalistic demonesses; in Nepal, this story was transposed into a tale of trans-Himalayan conflict, and its central figure is regarded as a hometown hero. Until today, a three-day festival procession of him circumnavigates the city of Kathmandu. This paper will explore these local domestications of Buddhist stories and analyze how these traditional celebrations have changed in the context of the shifting regional and political landscape of Nepal and the region.