How do contemporary Westerners and Tibetans understand not only what it means to be 'Buddhist', but what it means to be hailed as one from 'the West' or from 'Tibet'? This anthropological study examines the encounter between Western travellers and Tibetan exiles in Bodhanath, on the outskirts of Kathmandu, Nepal and analyses the importance of Buddhism in discussions of political, cultural and religious identity. Moran examines how Tibetans and Tibetan Buddhism are 'created' in the encounters taking place in Bodhanath and how Western Buddhists come to terms with their imagined, then reified culture and religion. Tibetan Buddhism has become Bodhanath's cultural product par excellence, it is not only a spectacle for foreign tourists to see, but a reminder of national-culture for displaced Tibetans. Special focus is given here to the ways in which Tibetan Buddhism has been presented as an object to be observed, reflected upon, and internalized by Western travellers, often at the feet of Tibetan lamas. This study examines the often invisible assumptions that structure the perception of Tibetan Buddhism, as well as the practices and narratives through which Tibetan and Western Buddhist subjects are produced. Based on extensive field research in Nepal, Buddhism Observed questions traditional assumptions about Buddhism and examines the rarely considered phenomenon of Western conversions to a non-Western religion. Scholars of anthropology, religion and cultural studies will find here a refreshing insight into how to approach 'other' societies, religions and cultures.