Bonism was the main religion practiced by early inhabitants of the country and remained so for many centuries before the advent of the doctrines of Lord Buddha. According to Bhutanese tradition, the history of Bhutan began sometime in around 638 AD when the Tibetan Buddhist King, Songtsen Gampo (617-698 AD), constructed the first two Buddhist temples: Kyichu in the Paro valley and Jampa in Bumthang valley.  

Many historians connect the coming of Buddhism in Bhutan only with the arrival of Guru Rinpoche in 746 AD. Buddhism, however, was in fact already in practice in several parts of Bhutan much earlier than it is believed hitherto. The doctrines of Lord Buddha reached the soil of Bhutan long before they reached Tibet. The arrival of a Tantrist from Swat (in present day Pakistan) known as Guru Rinpoche, or the Precious Master however gave it a new flourish throughout the country from Kurtoe and Trashiyangtse valleys in the east to Haa and Paro valleys in the west. 

In the centuries that followed, Bhutan was home to many Buddhist sages and saints. Various schools of Buddhism in Bhutan assimilated other earlier practices and beliefs. The aspirations towards enlightenments and the beliefs in the innate goodness of human beings are widely shared amongst Buddhists and majority of the Bhutanese are Buddhists. In the present day, Bhutan is the only country in the world to have adopted Mahayana Buddhism in its Tantric form as its official state religion. It is similar to Tibetan Buddhism but has unique beliefs and practices. 

Hinduism is another religion, practiced particularly in southern Bhutan. The Hindu religion as practiced by the lhotsampa, the people of Nepali origin, has many common saints and divinities with Tantric Buddhism, the school of Buddhism prevalent in Bhutan.  

Religion remains part of every aspect of Bhutanese life. Buddhism has a significant influence on the values of the Bhutanese and has shaped the institutions, organizations, arts, drama, architecture, literature and social structure. Bhutan’s culture, as in other societies, is continually adapting itself in the face of development.