Germany and the Kingdom of Bhutan have maintained consular relations since 2000 and diplomatic relations since 2020. Neither country has its own embassy in the other, but they have both appointed honorary consuls. The Bhutanese embassy in Brussels is responsible for maintaining official bilateral contacts, as is the German embassy in New Delhi. In March 2023, the Prime Minister of Bhutan, Dr Lotay Tshering, paid the Kingdom’s first official visit to Germany, meeting the Federal President and the Federal Chancellor, among others, in Berlin.

Germany supports Bhutan's development through international organizations and multilateral as well as regional projects. Furthermore, private initiatives promote projects related to inclusion, microfinance, biodiversity, and education and training.

Germany is also engaged in cultural preservation projects in Bhutan, supporting, for example, the restoration of the bridge to Punakha monastery fortress and a multiannual project to preserve traditional Bhutanese manuscripts.