Prior to the adoption of the present national flag on Dec16 1962, flags with faces were used in Nepal:

Image based on Flaggenbuch:
image by Jaume Ollé, 27 June 2001

Image based on Flags of All Nations:
image by Jaume Ollé, 27 June 2001
Nozomi Kariyasu, 27 June 2001

Information on a more ancient representation of the Nepali flag can be found in M. Lupant's book:

The first reproduction of the Nepali flag found by M. Lupant is shown in a book published by Perceval Laundon in 1928 (Nepal, vol. 1, pp. 233-236, Constable, London). The flag was crimson with a green border. It was made of two superposed isoceles triangles. The two points could have symbolized the royalty and the Rana family. The moon symbolized the King and the sun symbolized the Rana family. Moon and Sun expressed the hope that the Nation shall live as long as them. The faces are both shown with ears and a symbol in the middle of the forehead (probably one of the coloured spots used by Hinduists, whose name I forget), and the face in the upper triangle has a small neck putting it above the moon.
Ivan Sache, 27 June 2001