Early History
Many of the important events in the country’s early history involved saints and religious leaders and were therefore chronicled only in scriptures. Most of these original documents were destroyed in fires in the printing works of Sonagatsel in 1828 and in Punakha Dzong in 1832. Much of what was left in the old capital of Punakha was lost in an earthquake in 1897 and more records were lost when Paro Dzong burned in 1907. Therefore much of the early history of Bhutan relies on reports from British explorers, on legend and folklore, and the few manuscripts that escaped these disasters.
Archaeological evidence suggests Bhutan was inhabited as early as 1500–2000 BC by nomadic herders who lived in low-lying valleys in winter and moved their animals to high pastures in summer. Many Bhutanese still live this way today. The valleys of Bhutan provided relatively easy access across the Himalaya, and it is believed that the Manas River valley was used as a migration route from India to Tibet.
Some of the early inhabitants of Bhutan were followers of Bon (known as Ben cho in Bhutan), the animistic tradition that was the main religion throughout the Himalayan region before the advent of Buddhism. It is believed that the Bon religion was introduced in Bhutan in the 6th century AD.
Buddhism was probably first introduced to parts of Bhutan as early as the 2nd century, although most historians agree that the first Buddhist temples were built in the 7th century AD.
The kingdom of Cooch Behar, in what is now West Bengal, influenced Bhutan from the early days. The rulers of Cooch Behar established themselves in Bhutan, but their influence faded in the 7th century AD as the influence of Tinet grew along with the introduction of Buddhism.
(Source lonely planet, http://www.lonelyplanet.com/bhutan/history#288499)