This article is an attempt to relook at the treaties of 1949 and 2007 between India and Bhutan and argues that the 2007 Treaty is the outcome of the evolution and maturity of Bhutan as an independent and sovereign state, that it is imperative for India to make constant adjustments in its foreign policy towards Bhutan to secure its influence in the tiny but important country and maintain the strength of India–Bhutan bilateral relations. From the side of Bhutan, it is also important to have an ‘alliance shelter’, and India is best suited to meeting Bhutan’s needs for political, economic, societal and strategic shelter. 1 By using a historical approach, this article shows why it was necessary for the two countries to renew the 1949 Treaty in the first decade of the twenty-first century. The article uses historical methodology, in combination with interdisciplinary methods such as comparative analysis, generalisation, and expert interviews. Major sources for the paper include the texts of the Treaties, speeches by political leaders and published articles and books by international writers, including writers from India, Bhutan and Vietnam.