The national flag of Bhutan consists of a white dragon over a yellow and orange background. The flag is divided diagonally from the lower hoist side corner, making two triangles. The upper triangle is yellow and the lower triangle is orange. The dragon is centered along the dividing line, facing away from the hoist side.

Four changes were made to the flag since 1949. Druk was changed to white and Druk which formerly was parallel to the fly was embroidered diagonally along the fimbriation. This was due to the flag always being in a slumped state when hoisted, forcing Druk to face the earth. The lower half was changed from red to orange, on the basis of an order by Druk Gyalpo in 1968 or 1969. The shape of the flag was changed to a rectangle of 9 ft × 6 ft (2.7 m × 1.8 m).

The design of the flag is divided diagonally from the lower hoist-side corner; the upper triangle is yellow and the lower triangle is orange; centered along the dividing fimbriation is a large black and white dragon facing away from the hoist side. According to The Legal Provisions of the National Flag of the Kingdom of Palden Drukpa as Endorsed in Resolution 28 of the 36th Session of the National Assembly held on June 8, 1972, the yellow signifies civil tradition, and embodies the Druk Gyalpo’s being; therefore signifying the basis of monastic and civil traditions. The orange half which forms the fluttering end of the flag signifies monastic traditions of Buddha’s teachings, and signifies the traditions of Kagyu and Nyingma flourishing in harmony. Druk which spreads equally over the fimbriation signifies the Kingdom of Druk. Druk being the colour white signifies that although there are many peoples in Bhutan, of differing cultures, their inner thoughts and deeds are pure, and they highly cherish patriotism. This denotes that the sacred bond between sovereign and people is strong. The finial is a Norbu, or jewel.

The tradition of flying the national flag in front of government offices was regularised by the Druk Gyalpo, after his Secretariat was moved from Taba to Tashichho Dzong in 1968.