The beginnings of the National Council go back to 1965 when the Third Druk Gyalpo instituted the Royal Advisory Council (RAC) to advise the King and cabinet. The RAC comprised six representatives of the people, two representatives of the monastic body and a representative of the government. The Royal Advisory Council were also members of the National Assembly and the Cabinet and in a way served as a second chamber in the erstwhile Parliament which, until 2007, consisted only of the National Assembly as a unicameral ( single chamber) Parliament.

Today the National Council has taken the place of the Royal Advisory Council as one of the two chambers of Bhutan’s bicameral Parliament. Its main task is to monitor and review the functions of the government and to render advice to the Druk Gyalpo, the Prime Minister and the National Assembly on matters of national importance.