Mahayana Buddhism is the state religion of Bhutan, and Buddhists comprise two-thirds to three-quarters of its population. Although originating in Tibetan Buddhism, the Buddhism practiced in Bhutan differs significantly in its rituals, liturgy, and monastic organization. The state religion has long been supported financially by the government through annual subsidies to monasteries, shrines, monks, and nuns. In the modern era, support of the state religion during the reign of Jigme Dorji Wangchuck includes the manufacture of 10,000 gilded bronze images of the Buddha, publication of elegant calligraphied editions of the 108-volume Kangyur (Collection of the Words of the Buddha) and the 225-volume Tengyur (Collection of Commentaries), and the construction of numerous chorten (stupas) throughout the country. Guaranteed representation in the National Assembly and the Royal Advisory Council, Buddhists constitute the majority of society and are assured an influential voice in public policy.

Coordinates: 27°25′01″N 90°26′06″E / 27.417°N 90.435°E / 27.417; 90.435

Bhutan (Dzongkha: འབྲུག་ཡུལ་, tr ʼbrug-yul, "Druk Yul"; Devanagari भूटान, Bhūṭān), officially the Kingdom of Bhutan, is a landlocked state in South Asia, located at the eastern end of the Himalayas and bordered to the south, east and west by the Republic of India and to the north by the People's Republic of China. Bhutan is separated from the nearby country of Nepal to the west by the Indian state of Sikkim, and from Bangladesh to the south by the Indian states of Assam and West Bengal.

Bhutan existed as a patchwork of minor warring fiefdoms until the early 17th century, when the area was unified by Shabdrung Ngawang Namgyal, who fled religious persecution in Tibet and cultivated a separate Bhutanese identity. In the early 20th century, Bhutan came into contact with the British Empire, after which Bhutan continued strong bilateral relations with India upon its independence. In 2006, Business Week rated Bhutan the happiest country in Asia and the eighth-happiest in the world, based on a global survey.