The two Australians, who had been uncontactable, have confirmed they are safe and do not require consular assistance.
It brings the number of Australians found since the catastrophic floods began on August 26 to seven, after five were confirmed safe on Wednesday.
Treasurer Jim Chalmers said the update would bring relief to their families, but the federal government remains concerned for those still missing.
"That would be a huge relief to the loved ones of these two Australians who have been located," Dr Chalmers said on ABC News Breakfast on Friday.
"But we still have very serious concerns for the 36 Australians that we haven't been able to locate yet."
More than 1200 people have died since a glacier collapse near Nepal's border with Tibet triggered devastating floods across towns and valleys.
The three dozen Australians still missing are among more than 5000 people unaccounted for, according to the latest count from Nepali authorities.
The federal government has sent 19 officials and disaster response specialists to the region, with another 23 to be deployed within days.
On Thursday, Foreign Minister Penny Wong confirmed local authorities would conduct searches in areas where many Australians were believed to have been staying.
Rescue teams from the Nepali army were expected to search those target areas identified by Australia on foot, with helicopter and drone support.
"I can indicate that after our inquiries that Nepali authorities have advised us that searches are being conducted in the locations identified by Australia, including (The Kailash Hotel) and the Royal Himalaya Hotel amongst others," Senator Wong told reporters.
Australian drone operators and incident management specialists would be sent to the region along as part of a broader on-the-ground support team.
The 15-person Australian Disaster Assistance Response Team will use advanced drone technology for real-time imagery and geospatial information and mapping of affected regions, where transport routes and critical infrastructure remain severely damaged.
The technology has AI capabilities that can help find victims, along with thermal imaging to identify trapped victims through heat sources.
DFAT is working with local authorities to establish the whereabouts and welfare of affected Australians and to contact next of kin where appropriate.
Nepali authorities will also be given telecommunication data to help narrow the last known location of missing Australians.
"We continue to work around the clock to ascertain as much information as we can and provide it to the families of missing Australians," Senator Wong said.
"We all hold on to hope, and we've got to hold on to hope."
Aid supplies aboard a Royal Australian Air Force plane arrived in Kathmandu on Wednesday.
More than 1400 hygiene kits, 2200 solar lights and phone chargers were among the items.
Australians have donated more than $4 million to the Emergency Action Alliance to support recovery efforts.
The federal government will provide a further $3 million to match public donations, bringing the ongoing humanitarian support package to a total of $11 million.
14°C