In November 1967, the third Druk Gyalpo, His Majesty King Jigme Dorji Wangchuk commanded the Health Department to establish traditional medicine system for the welfare of Bhutanese people and to preserve its rich culture and tradition.

Accordingly, an Indigenous Dispensary was opened on 28th June 1968 at Dechencholing, Thimphu. The first persons to work in the Dispensary were Drungtsho Pema Dorji and Drungtsho Sherub Jorden, both of whom were trained in Tibet.

Drungtsho.
Pema Dorji

From a single Indigenous Dispensary in 1968, the traditional medical service has grown rapidly over the years to cover the entire country. By the end of 8th five year plan (2001) traditional medicine units have been established in all 20 districts. They are attached to district hospitals in view of the national health policy of integration.

At the national level the Indigenous Dispensary was upgraded to NationalIndigenousHospital in 1979 and shifted to the present site in Kawang Jangsa from Dechencholing. The NationalIndigenousHospital was renamed as the National Institute of Traditional Medicine (NITM) in 1988. In view of the increased functions, the NITM has been upgraded as the Institute of Traditional Medicine Services (ITMS) in 1998 and the post of Director was created.