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The Kingdom of Bhutan is located in the south of Asia and is a landlocked country on the southern slope of the eastern section of the Himalayas. The country is bordered by China in the north, northeast and northwest and is bordered by India's Sikkim and West Bengal in the west and south.

Bhutan is geopolitically in South Asia and is the region's second least populous nation after the Maldives. Thimphu is its capital and largest city, while Phuntsholing is its financial center.

The country's landscape ranges from lush subtropical plains in the south to the sub-alpine Himalayan mountains in the north, where there are peaks in excess of 7,000 metres (23,000 ft). Gangkhar Puensum is the highest peak in Bhutan, and it may also be the highest unclimbed mountain in the world. The wildlife of Bhutan is notable for its diversity.

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.

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 geog (village blocks) are administered by bodies called the Geog Tshogde.

In South Asia, Bhutan ranks first in economic freedom, ease of doing business, and peace; and is the least corrupt country as of 2016. However, Bhutan continues to be a least developed country. Hydroelectricity accounts for the major share of its exports.

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. It is a member of the United Nations, SAARC, BIMSTEC and the Non-Aligned Movement. The Royal Bhutan Army maintains a close relationship with the Indian Armed Forces. Bhutan is also notable for pioneering the concept of gross national happiness.

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