The young man, who had been admitted to Concord Hospital in a critical condition, died on Thursday, July 7, the New South Wales Police said in a statement.
Emergency services were called to the scene on Tuesday, June 21, at around 10 pm when a fire broke out at the On Sunset restaurant on River Road West in Parramatta.
When police officers from the Cumberland Area Command arrived at the scene, they were told a staff member at the restaurant had caught fire while using a cleaning product, according to a police statement.
Superintendent Adam Dunary, who arrived on the scene on behalf of the fire and rescue, told SBS Nepali that they found the young man seriously injured.
"Around 160 people at the scene were evacuated to a safe place," he said.
He also said that they are assisting the police in the investigation of the incident.
New South Wales Police do not consider the fire suspicious.
A report will be prepared to be presented to the coroner, and Safework New South Wales has been notified of the incident, police say.
Safework New South Wales has confirmed to SBS Nepali that it is investigating the incident.
Meanwhile, Nanda Gurung, president of the Non-Resident Nepali Association Australia (NRNA), expressed sorrow over the death of the Nepali youth in the accident and pledged his full support.
"We are talking to the relatives of (the deceased) about what can be done," he told SBS Nepali.
Similarly, On Sunset Restaurant paid tribute to its deceased employee on its Facebook page: "It is with great sadness and heavy hearts we share the passing of our On Sunset family member Pj."
"We are heart broken from this loss. We send our deepest condolences to his family, Friends and community. Fly high Angel, you will be forever missed.
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Read this in Nepali:
सिड्नीको एक रेस्टुरेन्ट जल्दा घाइते भएका नेपालीको मृत्यु