The national flag of Bhutan showed a Chinese dragon or a drug. The basic design of the flag by Mayum Choying Wangmo Dorji dates to 1947. A version was displayed in 1949 at the signing of the Indo-Bhutan Treaty. A second version was introduced in 1956 for the visit of Druk Gyalpo Jigme Dorji Wangchuck to eastern Bhutan; it was based upon photos of its 1949 predecessor and featured a white Druk in place of the green original.

The Bhutanese goverment subsequently redesigned their flag to match the measurements of the flag of India, which they believed fluttered better than their own. Other modifications such as changing the red background color to orange led to the current design, in use since 1969. The National Assembly of Bhutan codified a code of conduct in 1972 to formalize the flag's design and establish protocol regarding acceptable flag sizes and conditions for flying the flag.

The current flag is divided diagonally from the lower hoist-side corner, with the upper triangle yellow and the lower triangle orange. Centred along the dividing line is a large black and white dragon facing away from the hoist side. The dragon is holding a norbu, or jewel, in each of its claws. The background colours of the flag, yellow and orange, are identified as Pantone 116 and 165 respectively. Equivalents of these shades and the white of the Druk are specified by various other codes.

More Info: en.m.wikipedia.org