The 68-year-old leader of the Communist Party (Maoist Center) received the support of 268 of the 270 members of the House of Representatives present for the vote, with only two votes against.
All political parties except the Popular Front and the Nepal Workers and Peasants Party voted for Prachanda.
Dahal was sworn in for a third time on December 26 after leaving the Nepalese Congress-led electoral alliance to join a coalition with the Communist Party of Nepal (Unified Marxist-Leninist) led by Khadga Prasad Sharma Oli, the former opposition leader. and five other smaller political organizations.
Pashupati Shamsher JB Rana, the senior member of the House of Representatives who chaired the meeting, said Prachanda’s motion of no confidence passed overwhelmingly.
To win the approval of the legislature, Dahal needed at least 138 votes from the 275 MPs to continue his tenure as prime minister.
After the vote of confidence, the process of electing the President and Vice President of the House of Representatives, who must be elected within the next 15 days under the Constitution, will begin.
Dahal, who has appointed just three MPs and four cabinet ministers, is now set to expand his administration to include more members from the seven ruling coalition parties.
In the governing alliance, the Communist Party (Unified Marxist-Leninist) has 78 MPs, the Maoists 32, the Rastriya Swatantra 20, the Rastriya Prajatantra 14, the Janata Samajwadi 12, the Janmat six and Nagarik Unmukti four.
The government forces also have three independent legislatures with a total of 169 seats in parliament.
Speaking to the assembly, Dahal said he wanted to pursue a policy of consensus, cooperation and mutual trust, and stated that as world leader he wanted to send a message of national unity.
red/dim