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To strengthen bilateral ties, the Nepal-Bhutan Friendship and Cultural Society was established in Kathmandu in 1969, with formal diplomatic relations following in 1983.

According to Bhutanese records, diplomatic connections between Nepal and Bhutan date back to King Ram Shah’s rule in Gorkha. Cultural exchanges have been documented since the era of King Prithvi Narayan Shah. In contemporary history, both nations were founding members of the South Asian Association for Regional Cooperation (SAARC).

High-level exchanges include Bhutanese King Jigme Singye Wangchuck’s visit to Nepal for the 3rd SAARC summit (1987) and King Birendra attending a SAARC meeting in Bhutan (1988). More recently, His Majesty King Gyanendra Bir Bikram Shah Dev visited Bhutan for private discussions with King Jigme Khesar Namgyel Wangchuk in October of 2024.

"Knowledge is Power.
Work is Worship."

– Motto of the Royal House of Shah
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