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Buddhism is the third-largest religious affiliation and formed about 0.63% of the population of Bangladesh. It is said that Buddha once in his life came to this region of East Bengal to spread his teachings and he was successful in converting the local people to Buddhism, specially in the Chittagong Division and later on Pala empire propagate and patronized Buddhist religion throughout the Bengal territory.
About 1 million people in Bangladesh adhere to the Theravada school of Buddhism, while a smaller portion are Mahayana Buddhists. Over 65% of the Buddhist population is concentrated in the Chittagong Hill Tracts region, where it is the predominant faith of the Rakhine, Chakma, Marma, Tanchangya, Jumma people and the Barua. The remaining 35% are Bengali Buddhists. Buddhist communities are also present in the urban centers of Bangladesh, particularly Chittagong and Dhaka.
right|thumb|The [[Somapura Mahavihara is the oldest Buddhist institution in Bangladesh.]]
right|thumb|[[Buddha Dhatu Zadi, a Buddhist temple in Bandarban]]
History
right|thumb|The earliest statue of Buddha found in Mahasthangarh
Legend said that Gautama Buddha came to the region to spread Buddhism, and it was speculated that one or two individuals became monks to follow in his footsteps. However, Buddhism did not gain much support until the reign of Ashoka when Buddhism gained a toehold. The Pala Empire that controlled the Indian subcontinent spread many Buddhist ideologies in modern Bangladesh and built many monasteries such as the Mahasthangarh and the Somapura Mahavihara. During the Pala Dynasty, a famous teacher named Atisha was born in the city of Bikrampur and spread Mahayana Buddhism.
Chandra Dynasty's Puranchandra and Subarnachandra adopted Buddhism, as did their successors Trailokyachandra and Srichandra who ruled Harikel and Chandradwip (Barisal). The Khadga Dynasty was a Buddhist dynasty of kings that carried the surname Bhatt. They made several temples and monasteries. King Rajabhata was for example a very committed Mahayanist Buddhist.
Buddhism in various forms appears to have been prevalent at the time of the Turkic conquest in 1202. The invading armies found numerous monasteries, which they destroyed. With the destruction of centres of Buddhist learning, such as Nalanda University, Buddhism rapidly disintegrated. In subsequent centuries and up through the 1980s nearly all the remaining Buddhists lived in the region around Chittagong, which had not been entirely conquered until the time of the British Raj (1858–1947). During the 19th century, a revival movement developed that led to the development of two orders of Theravada monks, the Sangharaj Nikaya and the Mahasthabir Nikaya.
thumb|Buddhist stupa in [[Bandarban|border]]
In the Chittagong Hills, Buddhist tribes formed the majority of the population, and their religion appeared to be a mixture of tribal beliefs and Buddhist doctrines. According to the 1981 census, there were approximately 538,000 Buddhists in Bangladesh, representing less than 1 percent of the population.