The increasing number of private cars, public transportation vehicles, and pedestrians, as well as the absence of adequate space for these ground amenities, are one of the primary causes of traffic congestion and accidents in the Kathmandu Valley. Investigations have indicated that the Kathmandu Valley has the greatest traffic accidents despite the heavy presence of the government and its agencies there. Most teens and young adults suffer injuries while using motor vehicles. The study's primary objective is to foresee and prevent such complications by planning for sufficient subsurface infrastructure (a cut‐and‐cover rectangular tunnel) for the Kathmandu Valley's transportation network. The overlying pressure, lateral earth pressure, live load, uplift pressure, and live surcharge are some of the forces acting on the tunnel, creating unique stress and moment zones. The tunnel meets the following geometric requirements: (a) Each of the tunnel's two cells has a clear span of 10 m and a clear height of 5.5 m. The side walls, inner walls, top slab, and bottom slab are all 700 mm thick. Soil has built up to a height of 4 m over the tunnel's roof. The analytical method is used in the tunnel segment's analysis. Furthermore, the designed tunnel has been evaluated for stability, considering the deflection and shear resistance. The analysis indicates that the tunnel meets the stability requirements. This implies that the structure is capable of withstanding the applied forces without excessive deflection. Non‐linear dynamic time history analyses of the El Centro earthquake and the Gorkha earthquake were computed. From the El Centro earthquake, the maximum displacement was 23.63 mm at 10.59 s, and from the Gorkha earthquake, the maximum displacement was 16 mm at 0.19 s for the modeled structures.