The main aim of the paper is to familiarize the readers with the economy, and above all the agricultural sector of the Kingdom of Bhutan. The direct inspiration for this paper was the ban on cage breeding of laying hens introduced in this country in 2012, which brings to mind an important event, which happened in 1972, when the King of Bhutan announced the concept of the Gross National Happiness Index (GNH). Figures and graphics presented in the article were prepared on the basis of Bhutan’s national statistics and available publications. The structure of Bhutan’s economy is dominated by the industrial and services sectors. The share of agriculture in generating GDP has ranged from 14 to 22% in the last twenty years, with employment in agriculture reaching almost 60% of the total workforce. The agricultural sector is highly fragmented, and at the same time vulnerable to threats resulting from difficult natural conditions and climate change. Bhutan is not achieving food self-sufficiency, despite strong support from Bhutanese authorities for the sector and increasing productivity. The changes taking place in agriculture and the entire economy of Bhutan are strongly oriented towards the implementation of the sustainable development paradigm.