The ship was laid down as "Norseman" by John I. Thornycroft and Company at Woolston, Hampshire on 9 September 1939. She was launched on 4 December 1941. Later in December, an air raid on the shipyard saw "Norseman" take serious damage; a direct hit nearly cut the destroyer in two. The ship was repaired, during which her name was changed to "Nepal", honouring Nepal's contribution to the British war effort. "Nepal" was commissioned into the RAN on 11 May 1942: although commissioned as an Australian warship, she remained the property of the Royal Navy. The warship cost 402,939 pounds to build.