Synopsis It is obvious that any country would like to have various options to pursue the goals of its foreign policy, viz. diplomacy, military, economy and lastly, cultural heritage. In bhutan’s case, being a small and landlocked state, the military option is out of question due to its weak military position, and lack of funds to maintain defence force. But the remaining three options, diplomacy, economic development and cultural status have proved to be quite useful. Bhuta, in fact has utilised the above three options to the maximum extent to formulate its own foreign policy. Overall the impression, which we get is that with Bhutan has succeeded in maintaining its sovereign status and relative autonomy of action in the World Politics.