A place of peace/tranquility/happiness where all the inhabitants are enlightened

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In Tibetan Buddhist tradition, Shambhala (also spelled Shambala or Shamballa) is a mystical kingdom hidden somewhere beyond the snowpeaks of the Himalayas. It is mentioned in various ancient texts, including the Kalachakra Tantra and the ancient texts of the Zhang Zhung culture which pre-dated Tibetan Buddhism in western Tibet. The Bön scriptures speak of a closely-related land called Olmolungring. Shambhala (Tib. bde 'byung) is a Sanskrit term meaning "place of peace/tranquility/happiness". Shakyamuni Buddha is said to have taught the Kalachakra tantra on request of King Suchandra of Shambhala; the teachings are also said to be preserved there. Shambhala is believed to be a society where all the inhabitants are enlightened, actually a Buddhist "Pure Land", centered by a capital city called Kalapa. An alternative view associates Shambhala with the real empire of Sriwijaya where Buddhist master Atisha studied under Dharmakirti from whom he received the Kalachakra initiation.

The Western fascination with Shambhala has often been based upon fragmented accounts of the Kalachakra tradition, or outright fabrications. Tibet was largely closed to outsiders until very recently, and so what information was available about the tradition of Shambhala was haphazard at best. The first information that reached western civilization about Shambhala came from a Portuguese Jesuit priest and explorer, Estêvão Cacella, in early 17th century.

During the 19th century, Theosophical Society founder H.P. Blavatsky alluded to the Shambhala myth, giving it currency for Western occult enthusiasts. Later esoteric writers further emphasized and elaborated on the concept of a hidden land inhabited by a hidden mystic brotherhood whose members labor for the good of humanity. The mystic Nicholas Roerich and the Soviet agent Yakov Blumkin led two Tibetan expeditions to discover Shambhala, in 1926 and 1928.

Madame Blavatsky, who claimed to be in contact with a Great White Lodge of Himalayan Adepts, mentions Shambhala in several places without giving it especially great emphasis. (The Mahatmas, we are told, are also active around Shigatse and Luxor.) Blavatsky's Shambhala, like the headquarters of the Great White Lodge, is a physical location on our earth, albeit one which can only be penetrated by a worthy aspirant.

Later esoteric writers like Alice Bailey (the Arcane School) and the Agni Yoga of Nicholas and Helena Roerich do emphasize Shambhala. Bailey transformed it into a kind of extradimensional or spiritual reality on the etheric plane. The Roerichs see its existence as both spiritual and physical. Related "hidden land" speculations surrounding the underground kingdom of Agartha led some early twentieth-century occultists (especially those associated with Nazi or Neo-Nazi occultism) to view Shambhala as a source of negative manipulation by an evil (or amoral) conspiracy. Nevertheless, the predominant theme is one of light and hope, as evidenced by James Redfield's and Chogyam Trungpa Rinpoche's respective books by that name.