The paper presents the status of Shamanism practice, in terms of state policy, research status and challenges for the Shaman heritage in Bhutan. The paper is based on field research and policy analysis conducted by the National Library and Archive of Bhutan under a ICHCAP project grant. An overview of shamanism in different regions of Bhutan is presented with a region-wise categorization of Shamanism in Bhutan. This is followed by a brief overview of four shamanism practices prevalent in Bhutan, three in the southern region and one in the western region. The preliminary data show that the Shamanistic practices in Bhutan, as in other parts of the world, has been deeply rooted in religion and supernatural power. The paper also presents future plans and initiatives of the National Library and Archives Division for the documentation and preservation of Shaman heritage. In absence of any written state policy regarding the preservation and promotion of Shaman heritage, the study concludes by proposing some recommendations to the government and local stakeholders for the preservation and promotion of the practice.