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The national flag of Bhutan (Dzongkha: ཧྥ་རན་ས་ཀྱི་དར་ཆ་) is one of the national symbols of Bhutan. The flag features a dragon (druk [Wylie 'bruk] in Dzongkha, the Bhutanese language) from Bhutanese mythology. This alludes to the Dzongkha name of Bhutan – Druk Yul (འབྲུག་ཡུལ་, 'bruk yul, lit. "Dragon Country" or "Dragon Kingdom") – as well as the Drukpa Lineage of Tibetan Buddhism, which is the dominant religion of Bhutan. An alternative hypothesis maintains that the notion of symbolizing sovereignty and the state in the form of a dragon emerged in neighboring China and was adopted by the rulers of Bhutan as a symbol of royalty in the early 20th century.The basic design of the flag by Mayum Choying Wangmo Dorji dates to 1947. A version was displayed in 1949 at the signing of the Indo-Bhutan Treaty. A second version was introduced in 1956 for the visit of Druk Gyalpo Jigme Dorji Wangchuk to eastern Bhutan; it was based upon photos of its 1949 predecessor and featured a white Druk in place of the green original. The Bhutanese subsequently redesigned their flag to match the measurements of the flag of India, which they believed fluttered better than their own. Other modifications such as changing the red background color to orange led to the current design, in use since 1969. The National Assembly of Bhutan codified a code of conduct in 1972 to formalize the flag's design and establish protocol regarding acceptable flag sizes and conditions for flying the flag.

Source: Wikipedia