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Traditional Medicine was included into National Healthcare System in 1968 with an establishment of a small dispensary unit on 28 June, in Dechencholing, Thimphu under the then Department of Health, through a Royal Decree by His Majesty Jigme Dorji Wangchuck, the Third King of Bhutan.

The dispensary was staffed by two Traditional Physicians; Drungtsho Pema Dorji and Drungtsho Sherab Jorden who were trained in Tibet. They drafted curriculum and started the Three-Year-Menpa (Clinical Assistant) course in 1971. The Five Year Drungtsho (Traditional Physician) Course was started in 1978 with the appointment of Thubten Lebi Lodroe alias Ladakh Amji as the Principal.

The dispensary was shifted to Kawa Jangsa in Thimphu and upgraded to National Indigenous Hospital in 1979 with separation of Training Centre, National Institute of Traditional Medicine in 1988. In 1998, NITM was upgraded to Institute of Traditional Medicine Services. NITM came under the Royal University of Bhutan in 2008 and in 2013; it was renamed and became the Faculty of Traditional Medicine under Khesar Gyelpo University of Medical Sciences of Bhutan.

The Pharmaceutical Research Unit was created in 1997 with modern equipment to conducts research for further quality control of raw materials and finished products for traditional medicines as well as developing new products. PRU was renamed Menjong Sorig Pharmaceuticals in 2008.

Similarly ITMS was upgraded to Division of Traditional Medicine in 2012 and further upgraded to Department of Traditional Medicine Services in nutrition under the Ministry of Health. The Department has three divisions viz. Division of Traditional Healthcare, Dividion of Local Healing and Spiritual Health (LHSH), Division of Menzerigpa and Zhibjuk (Research).

From a single indigenous dispensary unit in 1968, today, Traditional Medicine services are catered all over the nation with 63 Units in the country.

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