In his third attempt to become the new Prime Minister, Prachanda failed to get majority support as he managed only 259 votes in 601-member parliament.
The Constituent Assembly, which also serves as the interim parliament, also failed to elect Poudyal who received 124 votes in his favour and 246 against.
During the voting today, which was delayed due to last minute negotiations among the parties, 186 lawmakers remained neutral and abstained from voting.
He could not secure the required 50 per cent plus votes necessary to get elected.
The Parliament has been adjourned with the Work Management Committee of the Parliament set to decide on the next meeting to elect the prime minister.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.