Aviation officials said no one on board was injured, although one witness described how terrified passengers leapt from their seats as the cabin filled with smoke after the plane skidded to a halt.
The airport has now been closed except to helicopters, spokesman Purna Prasad Chudal said, adding that visibility was reasonable despite fog earlier in the day.
Chudal said the pilot overshot the runway during an initial attempt to land, before making a second try that sent the plane skidding off the tarmac.
"As the plane approached, it somehow missed the runway and ended up in the grassland area," said the airport's general manager Birendra Prasad Shrestha.
"All 224 passengers have been evacuated, no injuries, everyone is safe," Shrestha told AFP.
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