The state religion of Bhutan is the Drukpa Kagyupa, a branch of Mahayana Buddhism, institutionalised by Shadrung Ngawang Namgyel in the early seventeenth century. Since its introduction, Buddhism has shaped the nation's history and played a vital part in the lives of the people. Throughout Bhutan, from the most densely populated valleys to the remote mountain tops, religious monuments and symbols bear witness to a deep and respected faith.

Prayer wheels turn and prayer flags wave in the breeze to carry the the message of Buddhism forth on the winds. Every Bhutanese home has a "Choesum" or chapel where the family prays each day. Monks are held in great respect and play an active part in the community life. Until recently it was usual for one son of the family to enter the monastic order, a custom less prevalent today.

Buddhism came to Bhutan as early as 2nd. century AD. However it was only after the arrival of Guru Padma Sambhava that the religion flourished from Bumthang to Haa in the west and Tashiyangtse in the east. In the centuries that followed Bhutan was home to many saints including Milarepa, Longchen Ramjam, Phajo Drugom and Drukpa Kinley. The aspiration towards enlightment and the belief in the innate goodness of human beings are widely shared among Buddhists and majority of Bhutanese are Buddhists.
Hinduism is another religion, practiced in southern Bhutan. The Hindu religion as practiced by the southern Bhutanese has many common saints and divinity with Vajrayana, the school of Buddhism prevalent in Bhutan

Several temples are associated with Padma Sambhava, among them - Taktsang or "Tiger's Nest" located in Paro valley. Legend has it that he flew to Bhutan on the back of a Tiger and here he defeated the demons standing in the way of the spread of religion. Taktsang is perched on the ledge of a sheer 3000 foot cliff above the Paro valley.

The Kurje Lhakang in Bumthang is built on the site where after Padma Sambhava had meditated. Legend has it that his footprints and bodymarks appeared etched on a solid rock and a cyprus tree, which still stands, grew from his wooden staff.