Bhutan became a British protectorate through the 1910 Treaty of Punakha. The imprint of British legacy was visible under Article 2 of the 1949 Treaty, entrusting India to guide Bhutan’s foreign policy with New Delhi’s assurance of noninterference in Thimphu’s internal matters. A major shift occurred in the New Delhi-Thimphu relationship under the 2007 renegotiated Treaty of Friendship, guaranteeing Bhutan more autonomy in conducting its foreign policy and external affairs. Against this backdrop, this chapter first illustrates the strategic interests of India, China, and the United States in Bhutan. It further explains how Bhutan, as an associated state, has managed to navigate complex ties with its two behemoth neighbors—India and China—within the dominant geopolitical object-subject narrative. Second, it assesses the long-term fallout of China’s transgression at Bhutan’s Doklam plateau (2017) on the trilateral Beijing-Thimphu-New Delhi relationship and on a protracted Sino-Indian border dispute. Third, the chapter examines how Bhutan has been able to exercise its agency amidst a rivalry between China, India, and the United States. Finally, it evaluates the future trajectory of an India-China contestation for strategic influence over Bhutan.