The dragon on the flag is the "Druk," or "Thunder Dragon," which is a symbol of Bhutan. The yellow signifies the king's authority, while the orange represents the spiritual power of Buddhism, showing the harmony between the two.

Bhutan calls itself "Druk Yul," which means "Land of the Thunder Dragon." According to myth, the dragon's roar became thunder. The jewels held by the dragon symbolize the nation's wealth and well-being, and it well represents Bhutan's efforts to preserve its unique culture by keeping a distance from the outside world.