Bhutan is an inland country in the Himalayan region of South-central Asia, and is known for its unique culture and vernacular architecture. Vernacular architecture of Bhutan reflects its rich cultural heritage, religious beliefs, and historical significance and the natural setting. This paper examines the unique attributes of vernacular architecture of Bhutan and how the Government of Bhutan has gainfully utilized it for promoting Bhutan's unique identity.The study includes observational study of the settlements in Bhutan, documentation of architectural styles, field-based notes on vernacular terminology related to building units, materials and elements of culture around the buildings. The study also examines the collaborative approach of the Bhutan government with organizations like UNESCO, World Bank and NGOs that have promoted the vernacular practices for building.The paper findings show how the successful examples of promoting vernacular architecture from Bhutan can be used as a model or strategy for conserving cultural and built heritage as a brand and can be relevant in the South Asian context. The paper also discusses the paradox of how the balance between tourism and the unique identity of a place must be strategically placed to protect the distinctiveness of built environments, which otherwise depends significantly on tourism for sustenance.