Bhutanese refugees are Lhotshampas ("southerners"), a group of Nepali language-speaking Bhutanese people. These refugees registered in refugee camps in eastern Nepal during the 1990s as Bhutanese citizens who fled or were deported from Bhutan during the protest against the Bhutanese government by some of the Lhotshampas demanding human rights and democracy in Bhutan. As Nepal and Bhutan have yet to implement an agreement on repatriation, most Bhutanese refugees have since resettled to North America, Oceania and Europe under the auspices of the Office of the United Nations High Commissioner for Refugees. Many Lhotshampa also migrated to areas of West Bengal and Assam in India independently of the UNHCR.

The Lhotshampa or Lhotsampa people are a heterogeneous Bhutanese people of Nepalese descent. "Lhotshampa", which means "southern borderlanders" in Dzongkha, began to be used by the Bhutanese state in the second half of the twentieth century to refer to the population of Nepali origin in the south of the country. After being displaced as a result of the state-run ethnic cleansing and living in refugee camps in eastern parts of Nepal, starting in 2007 most of the Bhutanese Refugees were resettled to various countries, such as the United States, Canada, Australia, the United Kingdom, and other European countries. As of 2021 the number of Lhotshampa in Nepal is significantly lower than that in the United States and other countries where they have resettled. People of Nepalese origin started to settle in uninhabited areas of southern Bhutan in the 19th century.