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Bhutanese farmers have traditionally practised integrated subsistence farming, producing crops and livestock and utilising forest products. However, they are increasingly practising entrepreneurial farming today. The study of agricultural transformation is valuable for understanding the evolution of Bhutan’s agriculture systems. Therefore, the current study reviews the five components of agriculture responsible for the transformation of Bhutanese farmers from peasants to entrepreneurial farmers: urbanisation, farm mechanisation, community institutions, high-value products and youth aspirations. Given the current rate of globalisation and improvements in agribusiness, the number of entrepreneurial farmers in Bhutan is likely to rise in the future. However, relevant stakeholders must still strive to create a conducive environment for agribusiness in Bhutan.