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Located in the Eastern Himalayas, it is bordered by the Tibetan Autonomous Region of China in the north, the Sikkim state of India and the Chumbi Valley of Tibet in the west, the Arunachal Pradesh state of India in the east, and the states of Assam and West Bengal in the south.

Bhutan is geopolitically in South Asia and is the region's second least populous nation after the Maldives.

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. Throne covers were placed atop the temple cushions used by high lamas.

The wildlife of Bhutan is notable for its diversity.

In South Asia, Bhutan ranks first in economic freedom, ease of doing business, and peace; and is the least corrupt country in the region as of 2016 The government is a parliamentary democracy; the head of state is the King of Bhutan, known as the "Dragon King." Bhutan maintains diplomatic relations with 52 countries and the European Union, but does not have formal ties with the five permanent members of the United Nations Security Council.

Thimphu is its capital and largest city, while Phuntsholing is its financial center.

Bhutan fostered a strategic partnership with India during the rise of Chinese communism and has a disputed border with China.However, in every case, these seem to have been describing not modern Bhutan but the Kingdom of Tibet.The modern distinction between the two did not begin until well into the Scottish explorer George Bogle's 1774 expedition — realizing the differences between the two regions, cultures and states, his final report to the East India Company formally proposed labelling the Druk Desi's kingdom as "Boutan" and the Panchen Lama's as "Tibet".The central circular swirling quadrune is the gankyil in its mode as the "Four Joys".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.

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