Pandey got married at 15; his wife was 13. He spoke little and during social gatherings, he would spend most of his time sitting quietly in observation. Readers feel that he wrote as one who was able to understand the human mind for his writings delve deep into the mind of the character than its physicality. Pandey is also known as a "youn manobaigyanik" (youth psychologist) writer of Nepalese literature and one of his masterpieces "Bhinaju Ko Sweater" deals with the female psyche and human qualities. His poetry collection is "Bot Briksha Ko Udghatan" and story collections are "Ankhee Jhyal", "Manas", and "Hiunma Pareka Dobharu". He was the vice-chairman of Jana Sahitya Sangha and a member of its editorial board. He also founded Fulbari Goshti and actively worked at Nepali Sahitya Sanstha.

He shared a strong bond with two of his friends - Daulat Bikram Bista and late Bijaya Malla - who are also writers. They listened to each other's comments and criticisms and encouraged one another in their work.

Initially, Pandey worked as a senior officer at Royal Nepal Airlines Corporation. Afterwards he accepted the position as member of the Royal Nepal Academy offered by Late King Mahendra. During this time, he began the Prajnya Paricharcha program. Pandey served a five year term twice while King Mahendra was alive. But afterwards his term was terminated and he had to retire. He became dejected with the way things had developed; he had expected a longer commitment from the academy.

He felt that he was now left with his writing and he set his mind and heart to his work. He would wake up early in the morning and pray to Saraswati, Goddess of learning and wisdom. After that, he would sit down to read and write. Wherever he sat, he always had a pile of books nearby which his children instantly recognized to be his whenever they looked for him. He would often help them with their homework.

Pandey valued academics and encouraged his children to pursue further education. He wanted his youngest daughter to complete her doctorate but it was only after his death that she decided to do it. With age, he grew reserved. He also became disturbed with the way the new generation was acquiring a sense of individualism. He wanted a humanitarian society where people were close and considerate.

Although he was religious, he did not believe in idol worship. His daughter recounts an incident: "One day while Aabua (his children called him Aabua) and I were going to a temple, I asked him what god was. He answered smiling with a thoughtful expression on his face, 'God is that indescribable holy feeling. He does not live in temples; he lives within you, within all of us'." He was opened minded and believed in respecting other people's wishes. He used to say: "If tradition and culture are the ways a person can achieve that 'holy' feeling, then for her/him that is god. We all have our own ways to reach god and there are no boundaries that limit us in doing so."

He loved work. He believed that one should be rewarded according to one's achievements. He did not believe in inheritance rather he supported the search for oneself within oneself through work. "Work," he said, "is an individual's real recognition, her/his true introduction. A person is known through her/his work."

Pandey received several awards such as Nepal Academy Padak, Ratna Shree Padak, Gorkha Dakchin Bahu, and Mahendra Pragya Puraskar. Towards the end of his life, he was to be awarded the Siddhi Charan Shrestha Puraskar, but by the time the award ceremony was to be held, he passed away. An asthma and heart patient, he started growing weaker as the years passed. He still continued to write and teach and during winter, he would live in the Terai where the climate was warmer.

Pandey died of heart failure in 1992 on a quiet summer evening at his home with his family with him.