Most of the building stock in Nepal is based on masonry construction, which includes monumental, administrative, and residential structures. These structures are vulnerable during earthquakes, as evidenced by the massive structural damage, loss of human life, and property damage due to a lack of proper assessment and appropriate strengthening measures. An analysis of the seismic vulnerability of existing old Newari brick masonry buildings in the Pokhara Valley is presented. These buildings were built using indigenous knowledge and technology. The investigation is based on analytical studies, with some material properties obtained from field tests. Proper modeling of a masonry structure is crucial for reliable seismic resistance and structural design. However, modeling a real masonry structure is a challenging and computationally demanding task due to its complicated framework, requiring in-depth knowledge, realistic material properties, and relevant information. The aim of this research is to assess the seismic performance of old Newari masonry buildings using stress level and fragility curves. The research issues are addressed analytically through linear time history analysis using the finite element program-based software Sap 2000 v20. In dynamic analysis, numerical building models were subjected to three synthetic earthquakes. The performance status of the building based on various stress levels is evaluated, and weak regions are identified. The fragility curve of the structure is assessed, considering the ground motion parameters in the locality. The fragility function is plotted with the probability of failure at an interval of 0.10 g. The results of the analysis highlight that the studied structure is vulnerable compared to the codal provisions and standard recommendations.