Bon, considered the indigenous religion, is the oldest religious tradition before Buddhism transmission. The once flourishing religion remains unknown to the world until recently after it lost in the competition with Buddhism in the 9th century. Bon followers were forced to flee remote areas under severe persecution, never regaining its popularity in Tibet. As Tibetology arises and tourism develops in Tibet, Bon has been studied scientifically and began to be the interest of the scientific research and general public as well.

The shamanistic religion is believed originated in the land of Olmo Lungring and brought to ancient Kingdom of Shang Shung which covered most of Tibetan territory today. It was believed that Tonpa Shenrab Miwo, one of the three brothers, Dagpa, Salba and Shepa, who studied Bon doctrines in the heaven named Sridpa Yesang and acted as guides for sentient beings, was the founder of Bon and the guide of the current world. Born as a prince and having an experience similar with that of Sakyamuni, his counterpart in Buddhism, he subdued a number of demons, and finally transmitted the Bon faith into Shang Shung. Then the faith flourished there. In the eighth century, Songtsen Gampo conquered Shang Shung and united Tibet and then Buddhism was introduced. Since Bon priests who claimed being attributed supernatural powers interfered politic and royal affairs, the Tubo royal family adopted policy of supporting Buddhism and banning Bon. During Lang Darma's rule, Bon attempted its last strike and Buddhists were persecuted and first Buddhism transmission was stopped. However, after Lang Darma was assassinated, Bon faded out while its foe, Buddhism gradually regained its popularity. In order to pass the tradition down, Bon experienced reform and adopted some concepts of Buddhism in order to survive just as Buddhism did at the beginning of its transmission.

The Bon tradition difficultly made its survival and developed its own elaborate tradition of metaphysics, cosmology doctrine, philosophy and extensive written canon although it was discouraged ever since. In 1998, a statistic made by a Tibetan Tibetologist showed there were about 90 monasteries in Tibet Autonomous Region, most of them in Dengchen (a county in Chamdo) with monk population of more than 3,000, about 90 reincarnated high monks, and more than 130 thousand Bon followers. There are now mainly three Bon sects, namely the Old Bon, The Yungdrung Bon and the New Bon.