Bhutan

The precise etymology of "Bhutan" is unknown, although it is likely to derive from the Tibetan endonym "Böd" for Tibet. Traditionally, it is taken to be a transcription of the Sanskrit Bhoṭa-anta (भोट-अन्त) "end of Tibet" through Nepali Bhuṭān (भुटान), a reference to Bhutan's position as the southern extremity of the Tibetan plateau and culture.

Since the 17th century, Bhutan's official name has been Druk yul (literally, "country of the Drukpa Lineage" or "the Land of the Thunder Dragon", a reference to the country's dominant Buddhist sect); "Bhutan" appears only in English-language official correspondence. The terms for the Kings of Bhutan Druk Gyalpo ("Dragon King"), and the Bhutanese endonym Drukpa, "Dragon people", are similarly derived.

Names similar to Bhutan—including Bohtan, Buhtan, Bottanthis, Bottan and Bottanter—began to appear in Europe around the 1580s. Jean-Baptiste Tavernier's 1676 Six Voyages is the first to record the name Boutan. However, these names seem to have referred not to modern Bhutan but to the Kingdom of Tibet. The modern distinction between the two did not begin until well into the Scottish explorer George Bogle's 1774 expedition. Realising the differences between the two regions, cultures, and states, his final report to the East India Company formally proposed calling the Druk Desi's kingdom "Boutan" and the Panchen Lama's kingdom "Tibet". The EIC's surveyor general James Rennell first anglicised the French name as "Bootan" and then popularised the distinction between it and Greater Tibet.

The first time a separate Kingdom of Bhutan appeared on a western map, it did so under its local name "Broukpa". Others include Lho Mon ("Dark Southland"), Lho Tsendenjong ("Southland of the Cypress"), Lhomen Khazhi ("Southland of the Four Approaches") and Lho Menjong ("Southland of the Herbs").

Stone tools, weapons, elephants, and remnants of large stone structures provide evidence that Bhutan was inhabited as early as 2000 BCE, although there are no existing records from that time. Historians have theorised that the state of Lhomon (lit. 'southern darkness'), or Monyul ("Dark Land", a reference to the Monpa, an ethnic group in Bhutan and Arunachal Pradesh, India), may have existed between 500 BCE and 600 CE. The names Lhomon Tsendenjong (Sandalwood Country) and Lhomon Khashi or Southern Mon (country of four approaches), have been found in ancient Bhutanese and Tibetan chronicles.

Buddhism was first introduced to Bhutan in the mid of 7th century CE. The Tibetan king Songtsen Gampo (reigned 627–649), a Buddhist convert, extended the Tibetan Empire into Sikkim and Bhutan. He ordered the construction of two Buddhist temples, Jambay Lhakhang in Bumthang in central Bhutan and Kyichu Lhakhang in Paro Valley. Buddhism was propagated in earnest in 746 under King Sindhu Rāja (also Künjom; Sendha Gyab; Chakhar Gyalpo), an exiled Indian king who had established a government in Bumthang at Chakhar Gutho Palace.

By the 10th century, Bhutan's religious history had had a significant influence on its political development. Various subsects of Buddhism emerged that were patronised by the various Mongol warlords.

Bhutan may have been influenced by the Yuan dynasty, with which it shares various cultural and religious similarities.

After the decline of the Yuan dynasty in the 14th century, these subsects vied with each other for supremacy in the political and religious landscape, eventually leading to the ascendancy of the Drukpa Lineage by the 16th century.

Locally, Bhutan has been known by many names. The earliest Western record of Bhutan, the 1627 Relação of the Portuguese Jesuits Estêvão Cacella and João Cabral, records its name variously as Cambirasi (among the Koch Biharis), Potente, and Mon (an endonym for southern Tibet). Until the early 17th century, Bhutan existed as a patchwork of minor warring fiefdoms, when the area was unified by the Tibetan lama and military leader Ngawang Namgyal, who had fled religious persecution in Tibet. To defend the country against intermittent Tibetan forays, Namgyal built a network of impregnable dzongs or fortresses, and promulgated the Tsa Yig, a code of law that helped to bring local lords under centralised control. Many such dzong still exist and are active centres of religion and district administration. Portuguese Jesuits Estêvão Cacella and João Cabral were the first recorded Europeans to visit Bhutan in 1627, on their way to Tibet. They met Zhabdrung Ngawang Namgyal, presented him with firearms, gunpowder and a telescope, and offered him their services in the war against Tibet, but the Zhabdrung declined the offer. After a stay of nearly eight months Cacella wrote a long letter from the Chagri Monastery reporting on his travels. This is a rare extant report of the Zhabdrung.

When Ngawang Namgyal died in 1651, his death was kept secret for 54 years. After a period of consolidation, Bhutan lapsed into internal conflict. In 1711, Bhutan went to war against the Raja of the kingdom of Koch Bihar in the south. During the chaos that followed, the Tibetans unsuccessfully attacked Bhutan in 1714. This period was marked by an increase in Bhutan's influence in Koch Bihar.

In the 18th century, the Bhutanese invaded and occupied the kingdom of Koch Bihar. In 1772, the Maharaja of Koch Bihar appealed to the British East India Company which assisted by ousting the Bhutanese and later attacking Bhutan itself in 1774. A peace treaty was signed in which Bhutan agreed to retreat to its pre-1730 borders. However, the peace was tenuous, and border skirmishes with the British were to continue for the next hundred years. The skirmishes eventually led to the Duar War (1864–65), a confrontation to control of the Bengal Duars. After Bhutan lost the war, the Treaty of Sinchula was signed between British India and Bhutan. As part of the war reparations, the Duars were ceded to the United Kingdom in exchange for a rent of ₹50,000. The treaty ended all hostilities between British India and Bhutan.

During the 1870s, power struggles between the rival valleys of Paro and Tongsa led to civil war in Bhutan, eventually leading to the ascendancy of Ugyen Wangchuck, the penlop (governor) of Trongsa. From his power base in central Bhutan, Ugyen Wangchuck defeated his political enemies and united the country following several civil wars and rebellions during 1882–85.

In 1907, an epochal year for the country, Ugyen Wangchuck was unanimously chosen as the hereditary king of the country by the Lhengye Tshog of leading Buddhist monks, government officials, and heads of important families, with the firm petition made by Gongzim Ugyen Dorji. John Claude White, British Political Agent in Bhutan, took photographs of the ceremony. The British government promptly recognised the new monarchy. In 1910, Bhutan signed the Treaty of Punakha, a subsidiary alliance that gave the British control of Bhutan's foreign affairs and meant that Bhutan was treated as an Indian princely state. This had little real effect, given Bhutan's historical reticence, and also did not appear to affect Bhutan's traditional relations with Tibet. After the new Dominion of India gained independence from the United Kingdom on 15 August 1947, Bhutan became one of the first countries to recognise India's independence. On 8 August 1949, a treaty similar to that of 1910, in which Britain had gained power over Bhutan's foreign relations, was signed with the newly independent India.

In 1953, King Jigme Dorji Wangchuck established the country's legislature—a 130-member National Assembly—to promote a more democratic form of governance. In 1965, he set up a Royal Advisory Council, and in 1968 he formed a Cabinet. In 1971, Bhutan was admitted to the United Nations, having held observer status for three years. In July 1972, Jigme Singye Wangchuck ascended to the throne at the age of sixteen after the death of his father, Dorji Wangchuck.

Bhutan's sixth Five-Year Plan (1987–92) included a policy of 'one nation, one people' and introduced a code of traditional Drukpa dress and etiquette called Driglam Namzhag. The dress element of this code required all citizens to wear the gho (a knee-length robe for men) and the kira (an ankle-length dress for women). A central plank of the Bhutanese government's policy since the late 1960s has been to modernise the use of Dzongkha language. This began with abandoning the use of Hindi, a language that was adopted to help start formal secular education in the country, in 1964. As a result, at the beginning of the school year in March 1990, the teaching of the Nepali language (which shares similarities with Hindi) spoken by ethnic Lhotshampas in southern Bhutan was discontinued and all Nepali curricular materials were discontinued from Bhutanese schools.

In 1988, Bhutan conducted a census in southern Bhutan to guard against illegal immigration, a constant issue in the south where borders with India are porous. Each family was required to present census workers with a tax receipt from the year 1958—no earlier, no later—or with a certificate of origin, which had to be obtained from one's place of birth, to prove that they were indeed Bhutanese citizens. Previously issued citizenship cards were no longer accepted as proof of citizenship. Alarmed by these measures, many began to protest for civil and cultural rights and demanded a total change to be brought to the political system that existed since 1907. As protests and related violence swept across southern Bhutan, the government in turn increased its resistance. People present at protests were labelled "anti-national terrorists". After the demonstrations, the Bhutanese army and police began identifying participants and supporters engaged in the violence against the state and government. They were arrested and held for months without trial. Soon the Bhutanese government arbitrarily reported that its census operations had detected the presence in southern Bhutan of over 100,000 "illegal immigrants" although this number is often debated. The census operations, thus, were used as a tool for the identification, eviction and banishment of dissidents who were involved in the uprising against the state. Military and other security forces were deployed for forceful deportations of between 80,000 and 100,000 Lhotshampas and were accused of using widespread violence, torture, rape and killing. The evicted Lhotshampas became refugees in camps in southern Nepal. Since 2008, many Western countries, including Canada, Norway, the United Kingdom, Australia, and the United States, have allowed resettlement of the majority of this group of Lhotshampa refugees.

In the late 20th and early 21st centuries, Bhutan underwent significant economic and social modernization. Schools, hospitals and roads were built, diseases such as leprosy and polio were eradicated, and literacy climbed significantly, reaching 98% among young people and 72% in the population at large. Bhutan's life expectancy at birth is 75, putting it at four years higher than the global average.

Bhutan's political system has recently changed from an absolute monarchy to a constitutional monarchy. King Jigme Singye Wangchuck transferred most of his administrative powers to the Council of Cabinet Ministers and allowed for impeachment of the King by a two-thirds majority of the National Assembly.

In 1999, the government lifted a ban on television and internet, making Bhutan one of the last countries to introduce television. In his speech, the King said that television was a critical step to the modernization of Bhutan as well as a major contributor to the country's Gross National Happiness, but warned that the "misuse" of this new technology could erode traditional Bhutanese values.

A new constitution was presented in early 2005. In December 2005, Wangchuck announced that he would abdicate the throne in his son's favour in 2008. On 9 December 2006, he announced that he would abdicate immediately. This was followed by the first national parliamentary elections in December 2007 and March 2008. On 6 November 2008, 28-year-old Jigme Khesar Namgyel Wangchuck was crowned king. On 1 January 2011, Bhutan’s 1949 treaty with India, which gave India a consultative role in Bhutan’s foreign relations, came into effect in its revised form, granting Bhutan formal independence in international relations, in turn, ending India’s 100-year-long suzerainty over Bhutan.

During the COVID-19 pandemic, Bhutan's tourism industry suffered significantly, causing the economy to contract by 10%. The privatization of tourism has also led to decreasing state revenue from the industry. By July 2021, Bhutan was able to vaccinate 90% of its population with a two-dose shot of AstraZeneca vaccines. Bhutan reopened to tourists in September 2022, but tourism numbers had not recovered to pre-pandemic levels as of 2025.

In 2022, the Gross National Happiness commission was dissolved. Businesses and industry have found its criteria too constraining, and have lobbied for the reintroduction of GDP as a national measure of success. Bhutan has faced a mass exodus of young people in recent years, with at least 50,000 people (more than 6% of the population) emigrating after the pandemic.

On 13 December 2023, Bhutan was officially delisted as a least developed country. On 17 December 2023, the King announced the creation of a special economic zone at Gelephu. The planned Gelephu Mindfulness City is intended to serve as an economic and financial hub, modelled after Dubai and Singapore. Planned infrastructure includes a new international airport and an extension of the Indian rail network to the city. The SEZ will have its own gold-backed currency. The project is governed by a Singaporean CEO and all of its board members are non-Bhutanese, except for the King.

Bhutan is on the southern slopes of the eastern Himalayas, landlocked between the Tibet Autonomous Region of China to the north and the Indian states of Sikkim, West Bengal, Assam to the west and south, and the Indian state of Arunachal Pradesh to the east. It lies between latitudes 26°N and 29°N, and longitudes 88°E and 93°E. The land consists mostly of steep and high mountains crisscrossed by a network of swift rivers that form deep valleys before draining into the Indian plains. In fact, 98.8% of Bhutan is covered by mountains, which makes it the most mountainous country in the world. Elevation rises from 200 m (660 ft) in the southern foothills to more than 7,000 m (23,000 ft). This great geographical diversity combined with equally diverse climate conditions contributes to Bhutan's outstanding range of biodiversity and ecosystems.

Bhutan's northern region consists of an arc of Eastern Himalayan alpine shrub and meadows reaching up to glaciated mountain peaks with an extremely cold climate at the highest elevations. Most peaks in the north are over 7,000 m (23,000 ft) above sea level; the highest point is 7,570-metre (24,840 ft)-tall Gangkhar Puensum, which has the distinction of being the highest unclimbed mountain in the world. The lowest point, at 98 m (322 ft), is in the valley of Drangme Chhu, where the river crosses the border with India. Watered by snow-fed rivers, alpine valleys in this region provide pasture for livestock, tended by a sparse population of migratory shepherds.

The Black Mountains in Bhutan's central region form a watershed between two major river systems: the Mo Chhu and the Drangme Chhu. Peaks in the Black Mountains range between 1,500 and 4,925 m (4,921 and 16,158 ft) above sea level, and fast-flowing rivers have carved out deep gorges in the lower mountain areas. The forests of the central Bhutan mountains consist of Eastern Himalayan subalpine conifer forests in higher elevations and Eastern Himalayan broadleaf forests in lower elevations. The Woodlands of the central region provide most of Bhutan's forest production. The Torsa, Raidāk, Sankosh, and Manas are Bhutan's main rivers, flowing through this region. Most of the population lives in the central highlands.

In the south, the Sivalik Hills are covered with dense Himalayan subtropical broadleaf forests, alluvial lowland river valleys, and mountains up to around 1,500 m (4,900 ft) above sea level. The foothills descend into the subtropical Duars Plain, which is the eponymous gateway to strategic mountain passes (also known as dwars or dooars; literally, "doors" in Assamese, Bengali, Maithili, Bhojpuri, and Magahi languages). Most of the Duars is in India, but a 10 to 15 km (6.2 to 9.3 mi)-wide strip extends into Bhutan. The Bhutan Duars is divided into two parts, the northern and southern Duars.

The northern Duars, which abut the Himalayan foothills, have rugged, sloping terrain and dry, porous soil with dense vegetation and abundant wildlife. The southern Duars have moderately fertile soil, heavy savanna grass, dense, mixed jungle, and freshwater springs. Mountain rivers, fed by melting snow or monsoon rains, empty into the Brahmaputra River in India. Data released by the Ministry of Agriculture showed that the country had a forest cover of 64% as of October 2005.

Bhutan's climate varies with elevation, from subtropical in the south to temperate in the highlands and polar-type climate with year-round snow in the north. Bhutan experiences five distinct seasons: summer, monsoon, autumn, winter and spring. Western Bhutan has the heavier monsoon rains; southern Bhutan has hot humid summers and cool winters; central and eastern Bhutan are temperate and drier than the west with warm summers and cool winters.

Bhutan signed the Rio Convention on Biological Diversity on 11 June 1992, and became a party to the convention on 25 August 1995. It has subsequently produced a National Biodiversity Strategy and Action Plan, with two revisions, the most recent of which was received by the convention on 4 February 2010.

Bhutan has a rich primate life, with rare species such as the golden langur. A variant Assamese macaque has also been recorded, which is regarded by some authorities as a new species, Macaca munzala.

The Bengal tiger, clouded leopard, hispid hare and the sloth bear live in the tropical lowland and hardwood forests in the south. In the temperate zone, grey langur, tiger, goral and serow are found in mixed conifer, broadleaf and pine forests. Fruit-bearing trees and bamboo provide habitat for the Himalayan black bear, red panda, squirrel, sambar, wild pig and barking deer. The alpine habitats of the great Himalayan range in the north are home to the snow leopard, blue sheep, Himalayan marmot, Tibetan wolf, antelope, Himalayan musk deer and the Bhutan takin, Bhutan's national animal. The endangered wild water buffalo occurs in southern Bhutan, although in small numbers.

More than 770 species of bird have been recorded in Bhutan. The globally endangered white-winged duck has been added recently in 2006 to Bhutan's bird list.

The 2010 BBC documentary Lost Land of the Tiger follows an expedition to Bhutan. The expedition is notable for claiming to obtain the first footage of tigers living at 4,000 metres (13,000 ft) in the high Himalayas. The BBC footage shows a female tiger lactating and scent-marking, followed a few days later by a male tiger responding, suggesting that the cats could be breeding at this elevation. Camera traps also recorded footage of other rarely seen forest creatures, including dhole (or Indian wild dog), Asian elephants, leopards and leopard cats.

In Bhutan forest cover is around 71% of the total land area, equivalent to 2,725,080 hectares (ha) of forest in 2020, up from 2,506,720 hectares (ha) in 1990. In 2020, naturally regenerating forest covered 2,704,260 hectares (ha) and planted forest covered 20,820 hectares (ha). Of the naturally regenerating forest 15% was reported to be primary forest (consisting of native tree species with no clearly visible indications of human activity) and around 41% of the forest area was found within protected areas. For the year 2015, 100% of the forest area was reported to be under public ownership.

More than 5400 species of plants are found in Bhutan, including Pedicularis cacuminidenta. Fungi form a key part of Bhutanese ecosystems, with mycorrhizal species providing forest trees with mineral nutrients necessary for growth, and with wood decay and litter decomposing species playing an important role in natural recycling.

The Eastern Himalayas has been identified as a global biodiversity hotspot and counted among the 234 globally outstanding ecoregions of the world in a comprehensive analysis of global biodiversity undertaken by WWF between 1995 and 1997.

According to the Swiss-based International Union for Conservation of Nature, Bhutan is viewed as a model for proactive conservation initiatives. The Kingdom has received international acclaim for its commitment to the maintenance of its biodiversity. This is reflected in the decision to maintain at least sixty per cent of the land area under forest cover, to designate more than 40% of its territory as national parks, reserves and other protected areas, and most recently to identify a further nine per cent of land area as biodiversity corridors linking the protected areas. All of Bhutan's protected land is connected to one another through a vast network of biological corridors, allowing animals to migrate freely throughout the country. Environmental conservation has been placed at the core of the nation's development strategy, the middle path. It is not treated as a sector but rather as a set of concerns that must be mainstreamed in Bhutan's overall approach to development planning and to be buttressed by the force of law. The country's constitution mentions environmental standards in multiple sections.

Although Bhutan's natural heritage is still largely intact, the government has said that it cannot be taken for granted and that conservation of the natural environment must be considered one of the challenges that will need to be addressed in the years ahead. Nearly 56.3% of all Bhutanese are involved with agriculture, forestry or conservation. The government aims to promote conservation as part of its plan to target Gross National Happiness. It currently has net negative greenhouse gas emissions because the small amount of pollution it creates is absorbed by the forests that cover most of the country. While the entire country collectively produces 2,200,000 metric tons (2,200,000 long tons; 2,400,000 short tons) of carbon dioxide a year, the immense forest covering 72% of the country acts as a carbon sink, absorbing more than four million tons of carbon dioxide every year. Bhutan had a 2018 Forest Landscape Integrity Index mean score of 8.85/10, ranking it 16th globally out of 172 countries.

Bhutan has a number of progressive environmental policies that have caused the head of the UNFCCC to call it an "inspiration and role model for the world on how economies and different countries can address climate change while at the same time improving the life of the citizen." For example, electric cars have been pushed in the country and as of 2014 make up a tenth of all cars. Because the country gets most of its energy from hydroelectric power, it does not emit significant greenhouse gases for energy production.

In practice, the overlap of these extensive protected lands with populated areas has led to mutual habitat encroachment. Protected wildlife has entered agricultural areas, trampling crops and killing livestock. In response, Bhutan has implemented an insurance scheme, begun constructing solar powered alarm fences, watch towers, and search lights, and has provided fodder and salt licks outside human settlement areas to encourage animals to stay away.

The huge market value of the Ophiocordyceps sinensis fungus crop collected from the wild has also resulted in unsustainable exploitation which is proving very difficult to regulate.

Bhutan has enforced a plastic ban rule from 1 April 2019, where plastic bags were replaced by alternative bags made of jute and other biodegradable material.

Bhutan is a constitutional monarchy with a parliamentary form of government. The reigning monarch is Jigme Khesar Namgyel Wangchuck. The current Prime Minister of Bhutan is Tshering Tobgay, leader of the People's Democratic Party. Bhutan's democratic transition in 2008 is seen as an evolution of its social contract with the monarchy since 1907. Bhutan was classified as an electoral democracy for year 2024 according to V-Dem Democracy Indices in the Regimes of the World classification.

The Druk Gyalpo ("Dragon King") is the head of state. The political system grants universal suffrage. It consists of the National Council, an upper house with 25 elected members; and the National Assembly with 47 elected lawmakers from political parties.

Executive power is exercised by the Council of Ministers led by the Prime Minister. Legislative power is vested in both the government and the National Assembly. Judicial power is vested in the courts. The legal system originates from the semi-theocratic Tsa Yig code, and was influenced by English common law during the 20th century. The chief justice is the administrative head of the judiciary.

The first general elections for the National Assembly were held on 24 March 2008. The chief contestants were the Bhutan Peace and Prosperity Party (DPT) led by Jigme Thinley and the People's Democratic Party (PDP) led by Sangay Ngedup. The DPT won the elections, taking 45 out of 47 seats. Jigme Thinley served as Prime Minister from 2008 to 2013.

The People's Democratic Party came to power in the 2013 elections. It won 32 seats and 54.88% of the vote. PDP leader Tshering Tobgay served as Prime Minister from 2013 to 2018.

Druk Nyamrup Tshogpa won the largest number of seats in the 2018 National Assembly election, bringing Lotay Tshering to the premiership and Druk Nyamrup Tshogpa into the government for the first time.

Tobgay returned to power as Prime Minister after the 2024 election, with the PDP gaining 30 seats; he assumed office on 28 January 2024.

Bhutan is divided into twenty Dzongkhag (districts), administered by a body called the Dzongkhag Tshogdu. In certain thromdes (urban municipalities), a further municipal administration is directly subordinate to the Dzongkhag administration. In the vast majority of constituencies, rural gewog (village blocks) are administered by bodies called the Gewog Tshogde.

Thromdes (municipalities) elect Thrompons to lead administration, who in turn represent the Thromde in the Dzongkhag Tshogdu. Likewise, geog elect headmen called gups, vice-headmen called mangmis, who also sit on the Dzongkhag Tshogdu, as well as other members of the Gewog Tshogde. The basis of electoral constituencies in Bhutan is the chiwog, a subdivision of gewogs delineated by the Election Commission.

In the early 20th century, Bhutan became a de facto protectorate of the British Empire under the Treaty of Punakha in 1910. British protection guarded Bhutan from Tibet and Qing China. In the aftermath of the Chinese Communist Revolution, Bhutan signed a friendship treaty with the newly independent Dominion of India in 1949. Its concerns were exacerbated after the annexation of Tibet by the People's Republic of China. However, Bhutan was never directly colonised.

Relations with Nepal remained strained due to Bhutanese refugees. Bhutan joined the United Nations in 1971. It was the first country to recognise Bangladesh's independence in 1971. It became a founding member of the South Asian Association for Regional Cooperation (SAARC) in 1985. The country is a member of 150 international organisations, including the Bay of Bengal Initiative, BBIN, World Bank, the International Monetary Fund and the Group of 77.

Bhutan maintains strong economic, strategic, and military relations with India. In February 2007, the Indo-Bhutan Friendship Treaty was substantially revised, and the revision came into effect on 1 January 2011, clarifying Bhutan's full control of its foreign relations, as well as its independence and sovereignty. Whereas the Treaty of 1949, Article 2 stated: "The Government of India undertakes to exercise no interference in the internal administration of Bhutan. On its part the Government of Bhutan agrees to be guided by the advice of the Government of India in regard to its external relations," the revised treaty now states "In keeping with the abiding ties of close friendship and cooperation between Bhutan and India, the Government of the Kingdom of Bhutan and the Government of the Republic of India shall cooperate closely with each other on issues relating to their national interests. Neither government shall allow the use of its territory for activities harmful to the national security and interest of the other." The revised treaty also includes this preamble: "Reaffirming their respect for each other's independence, sovereignty and territorial integrity", an element absent in the earlier version. By long-standing agreement, Indian and Bhutanese citizens may travel to each other's countries without a passport or visa, but must still have their national identity cards. Bhutanese citizens may also work in India without legal restrictions.

Bhutan does not have formal diplomatic ties with China, but exchanges of visits at various levels between them have significantly increased in recent times. The first bilateral agreement between China and Bhutan was signed in 1998 and Bhutan has also set up honorary consulates in the Special Administrative Regions of Hong Kong and Macau.

Bhutan's border with China is not mutually demarcated in some areas because China lays claims to those places. In 2021, after more than 35 years of border negotiations, China signed a memorandum of understanding with Bhutan to expedite those talks. Approximately 269 square kilometres (104 sq mi) remain under discussion between China and Bhutan. On 13 November 2005, Chinese soldiers crossed into the disputed territories between China and Bhutan and began building roads and bridges. Bhutanese Foreign Minister Khandu Wangchuk took up the matter with Chinese authorities after the issue was raised in the Bhutanese parliament. In response, Foreign Ministry spokesman Qin Gang of the People's Republic of China said that the border remains in dispute and that the two sides are continuing to work for a peaceful and cordial resolution of the dispute, denying that the presence of soldiers in the area was an attempt to forcibly occupy it. An Indian intelligence officer said that a Chinese delegation in Bhutan told the Bhutanese they were "overreacting". The Bhutanese newspaper Kuensel said that China might use the roads to further Chinese claims along the border.

Bhutan has very warm relations with Japan, which provides significant development assistance. The Bhutanese royals were hosted by the Japanese imperial family during a state visit in 2011. Japan is also helping Bhutan cope with glacial floods by developing an early warning system. Bhutan enjoys strong political and diplomatic relations with Bangladesh. The Bhutanese king was the guest of honour during celebrations of the 40th anniversary of Bangladesh's independence. A 2014 joint statement by the prime ministers of both countries announced cooperation in areas of hydropower, river management and climate change mitigation. Bangladesh and Bhutan signed a preferential trade agreement in 2020 with provisions for free trade.

Bhutan has diplomatic relations with 58 countries and the European Union and has missions in India, Bangladesh, Thailand, Kuwait, Belgium, and Australia. It has two UN missions, one in New York and one in Geneva. Bhutan also maintains a consulate-general in New York. Only India, Bangladesh, and Kuwait have residential embassies in Bhutan. Other countries maintain informal diplomatic contact via their embassies in New Delhi and Dhaka. Bhutan maintains formal diplomatic relations with several Asian and European nations, Canada, and Brazil. Other countries, such as the United States and the United Kingdom, have no formal diplomatic relations with Bhutan but maintain informal contact through their respective embassies in New Delhi and with the United States through Bhutan's permanent mission to the United Nations. The United Kingdom has an honorary consul resident in Thimphu. The latest country Bhutan has established diplomatic relations with is Qatar, on 16 October 2025.

Bhutan opposed the Russian annexation of Crimea in United Nations General Assembly Resolution 68/262.

The Royal Bhutan Army is Bhutan's military service. It includes the royal bodyguard and the Royal Bhutan Police. Membership is voluntary and the minimum age for recruitment is 18.

As a result of a 1948 treaty that allows India to assist Bhutan with defense needs, the army is trained by India. It has an annual budget of about US$13.7 million (1.8 per cent of GDP). As a landlocked country, Bhutan has no navy. It also has no air force or army aviation corps. The Army relies on the Eastern Air Command of the Indian Air Force for air assistance.

Bhutan is ranked as "Partly Free" by Freedom House. Bhutan's parliament decriminalised homosexuality in 2020.

Women in Bhutan tend to be less active in politics than men due to customs and aspects of Bhutan's culture that dictate a woman's role in the household. This leads to a limitation of their voices in government. Bhutan has made steps toward gender equality by enrolling more girls in school as well as creating the "National Commission for Women and Children" (NCWC) in 2004. This programme was created to promote and protect women's and children's rights. Bhutan also elected its first female Dzongda, equivalent to a District Attorney, in 2012, and its first female minister in 2013. Minister Dorji Choden, chair for the National Commission for Women and Children, believes that the aforementioned programme can be used to "promote women into more leadership roles" which can then lead women to take on more active roles in their society. Overall there has also been a gradual increase in women in power with a 68% increase in women representation from 2011 to 2016. Minorities have been represented in Bhutan's government since 2008, including in the cabinet, parliament, and local government.