Thamel's nightlife is densely concentrated and gets lively after dark — duelling sound systems, trekkers celebrating departures or returns, and the kind of informal, high-turnover energy that comes with a city that sees a lot of people passing through. The area around the Kathmandu Guest House has the highest concentration of bars. There is also a growing craft beer scene: Himalayan Brewing Co. and others produce ales that are considerably better than the standard Everest and Gorkha lagers available everywhere.
Cafes in Thamel by day are good for planning over coffee and wifi. The Garden of Dreams, next to the Kaiser Mahal, has a pleasant open-air cafe in its restored neoclassical grounds — one of the nicer places in the city for a quiet afternoon drink.