Thimphu (Dzongkha) is the capital and largest city of Bhutan. It is situated in the western central part of Bhutan, and the surrounding valley is one of Bhutan’s dzongkhags, the Thimphu District. The ancient capital city of Punakha was replaced as capital by Thimphu in 1955, and in 1961 Thimphu was declared as the capital of the Kingdom of Bhutan by the 3rd Druk Gyalpo Jigme Dorji Wangchuck.

The city extends in a north–south direction on the west bank of the valley formed by the Wang Chhu, which flows out into India as the Raidāk River. Thimphu is the fifth highest capital in the world by altitude and ranges in altitude from 2,248 metres (7,375 feet) to 2,648 metres (8,688 feet).Unusually for a capital city, Thimphu does not have its own airport, instead relying on the Paro Airport (connected by road some 52 kilometres (32 miles) away).

Thimphu, as the political and economic center of Bhutan, has a dominant agricultural and livestock base, which contributes 45% of the country’s GNP.Tourism, though a contributor to the economy, is strictly regulated, maintaining a balance between the traditional, development and modernization. Thimphu contains most of the important political buildings in Bhutan, including the National Assembly of the newly-formed parliamentary democracy and Dechencholing Palace, the official residence of the King, located to the north of the city. Thimphu is coordinated by the “Thimphu Structure Plan, 2002-2027”, an urban development plan with the objective of protecting the fragile ecology of the valley. Some of this development was undertaken with financial assistance from the World Bank and Asian Development Bank.

The culture of Bhutan is fully reflected in Thimphu in literature, religion, customs, and national dress code, the monastic practices of the monasteries, music, and dance, and in the media. Tshechu is an important festival when mask dances, popularly known as Cham dances, are performed in the courtyards of the Tashichho Dzong in Thimphu. It is a four-day festival held every year in September or October, on dates corresponding^[to the Bhutanese calendar.

Initially, when Bhutan was opened up for tourism in 1974, the Government-owned Tourism Corporation was set up in Thimphu to encourage and organise individual and group tours to destinations of cultural importance in Bhutan, concentrating on Buddhism, weaving, birds, nature and trekking, and any special package. This organization was privatised in 1994 and named as Bhutan Tourism Development Corporation. The corporation also owns and manages hotels and tourist lodges at all major tourist centres in Bhutan. It has its own fleet of cars and also interpreters in several international languages to cater to tourists of various denominations.

Thimphu does not have a vibrant night life but the number of nightclubs and pool rooms for young people is growing quickly. Of note is the Om Bar which attracts a number of the Bhutanese elite and expatriates who dine and discuss their business ventures there.The Plum’s restaurant is frequented by civil servants. Other nightclubs and pool rooms include the Buzz Lounge, the Space 34 nightclub and the pool venues 4 Degrees and the Zone.

The main street, Norzim Lam, contains a number of shops and small hotels and restaurants. The Bhutan Textile Museum, the National Library, the Peling Hotel, Wangchuck Hotel, the Chang Lam Plaza, the Art Cafe, the Khamsa Cafe, the Swiss Bakery, Yeedzin Guest House, the Mid-Point South Indian restaurant, the Benez restaurant, the Bhutan Kitchen and the sports field are buildings of note around this street area. Other notable hotels in the area include the elegant Druk Hotel, Druk Sherig Guesthouse, Hotel Jumolhari (noted for its Indian cuisine), Hotel Dragon Roots (established in 2004) and Hotel Senge. Near the main square is a clock, decorated with dragons, which is now an open-air theatre site and art and craft stores and the Tashi supermarket. In the building in front of the old cinema there is a Chinese restaurant and trekking stores. Some of the grocery stores such as Sharchopa are noted for their cheeses, namely Bumthang and Gogona.

The Drentoen Lam street is located off the main street and contains the post office and bank and administrative buildings and several music stores. Doebum Lam road runs parallel to the main Norzim Lam and also contains the Chamber of Commerce, Department of Tourism and the Ministry of Trade buildings and the odd bakery. In 2006, a new shopping district opened between Doebum Lam and Norzim Lam which includes the Zangdopelri shopping complex, the Phuntsho Pelri Hotel and Seasons, an Italian restaurant.