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The accident occurred on Sunday night along the Prithvi Highway in the Thakre area, police said.
The four Indian nationals were returning to Kathmandu after visiting Pokhara, a scenic city some 200 km from Kathmandu.
The deceased have been identified as Bimalchandra Agrawal, 40, Sadhana Agrawal, 35, Sandhya Agrawal, 40,
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The bus was heading towards Dhading from Kathmandu.
Road accidents are very common in Nepal. The country is mostly covered with mountains and most roads are narrow. Bus accidents in the country are generally blamed on poor roads.