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Synopsis Buddhism is divided into two great schools, Mahayana and Hinayana. Both systems originated in India, but since the former predominates in China, Japan, Nepal and in a modified form, in Tibet and Mongolia, while the latter is confined almost exclusively to Ceylon, Burma, and Siam; they are often and rather incorrectly known as Northern and Southern Buddhism. Mahayana is again divided into unreformed and reformed branches, the unreformed branch being found all over Eastern Asia, while the reformed branch has its centre in Japan. Roughly, we may compare these divisions of Buddhism to those of the principal Occidental faiths. Hinayana, or the earlier and more primitive form of Buddhism, corresponds to Judaism; Unreformed Mahayana to Catholicism, and Reformed Mahayana to Protestantism. Present work puts forth the essentials of Mahayana philosophy, in a simple form, and presents a historical outline of the origin and development of Mahayanic ideas and practices.