The kingdom of Bhutan lies in the Eastern Himalayas , between Tibet to the North, and the Indian territories of Assam and West Bengal to the south, Arunachal Pradesh to the east and Sikkim to the west. The kingdom has a total area of about 47,000 square kilometers and spreads between meridians 89°E and 93°E, and latitudes 27°N and 29°N.

Located in the heart of the high Himalayan mountain range, Bhutan is a landlocked country surrounded by mountains. The thinly populated Greater Himalayas, bounded to the north by the Tibetan plateau, reach heights of over 7,300 m, and extend southward losing height, to form the fertile valleys of the Lesser Himalayas that are divided by the Wang, Sunkosh, Trongsa and Manas rivers. The entire country is virtually mountainous, the 7554-m Kulha Gangri on the Tibetan border being the highest. North to south, Bhutan features three geographic regions, namely, the high Himalayas of the north, the hills and valleys of the interior, and the foothills and plains of the south. Its great rivers helped to carve its topography and their enormous potential for hydropower has helped shape the economy. Monsoon influences promote dense forestation in this region and alpine growth at higher altitudes. The cultivated central uplands and Himalayan foothills support the majority of the population. In the south, the Daurs Plain drops sharply away from the Himalayas into the large tracts of semi-tropical forest, savannah grassland and bamboo jungle. Forests and woodlands cover 70% of Bhutan 's total area.

The Drukpas form the major chunk with nearly 67% of the total population. They are of two groups. Those related to the Tibetans speak Dzongka. The other major language is Tsangla in the east with 11 different dialects. The Nepalis form 20% of the total Bhutanese people. Formerly the second largest peoples group after the Tsangla, they inhabited the southern region mostly. However, lately due to disagreements over government policies they have moved back to Nepal , their country of origin. Indians, Tibetans, Sikkimese, Sherpas, etc., form the remaining 13% of the population. The unity of the Bhutanese people and independence of the country is under control of the state religion, Buddhism. There is very limited religious freedom, as government and social pressure do not allow for public expressions of other faiths. Buddhism is followed by 70% of the population, while Hinduism is practiced by 25%. The rest are either Muslims or Christians.