In Buddhism

As in Hinduism, the Buddhist nāga generally has sometimes been portrayed as a human being with a snake or dragon extending over his head. One nāga, in human form, attempted to become a monk, and when telling it that such ordination was impossible, the Buddha told it how to ensure that it would be reborn a human, and so able to become a monk.

The nagas are believed to both live on Nagaloka, among the other minor deities and in various parts of the human-inhabited earth. Some of them are water-dwellers, living in streams or the ocean; others are earth-dwellers, living in caverns.

The nagas are the followers of Virūpākṣa (Pāli: Virūpakkha), one of the Four Heavenly Kings who guards the western direction. They act as a guard upon Mount Sumeru, protecting the dēvas of Trāyastriṃśa from attack by the asuras.

Among the notable nagas of Buddhist tradition is Mucalinda, nagaraja and protector of the Buddha. In the Vinaya Sutra (I, 3), shortly after his enlightenment, the Buddha is meditating in a forest when a great storm arises, but graciously, King Mucalinda gives shelter to the Buddha from the storm by covering the Buddha's head with his seven snake heads. Then the king takes the form of a young Brahmin and renders the Buddha homage.

In the Vajrayāna and Mahāsiddha traditions, nagas in their half-human form are depicted holding a nagas-jewel, kumbhas of amrita, or a terma that had been elementally encoded by adepts. In Tibetan Buddhism, nagas are known as klu or klu-mo and they are associated with water and cleanliness, as they live in oceans, rivers, lakes, and springs, and do not want their environments to be disturbed or polluted.

The two chief disciples of the Buddha, Sariputta and Moggallāna are both referred to as Mahānāga or "Great nāga". Some of the most important figures in Buddhist history symbolize nagas in their names such as Dignāga, Nāgāsēna, and, although other etymons are assigned to his name, Nāgārjuna.

The Nāga Saṃyutta of the Pali Canon consists of suttas specifically devoted to explaining nature of the nagas.

In the "Devadatta" chapter of the Lotus Sutra, the daughter of the dragon king, an eight year old longnü (龍女, nāgakanyā), after listening to Mañjuśrī preach the Lotus Sutra, transforms into a male Bodhisattva and immediately reaches full enlightenment. Some say this tale appears to reinforce the viewpoint prevalent in Mahayana scriptures that a male body is required for Buddhahood, even if a being is so advanced in realization that they can magically transform their body at will and demonstrate the emptiness of the physical form itself. However, many schools of Buddhism and classical, seminal Chinese exegeses interpret the story to repudiate this viewpoint, stating the story demonstrates that women can attain Buddhahood in their current form.

According to tradition, the Prajñapāramita sutras had been given by the Buddha to a great nāga who guarded them in the sea, and were conferred upon Nāgārjuna later.

In Tibetan Buddhist literature, nagas are portrayed as guardians or owners of submerged treasure, which can be mere wealth or supernatural, "spiritual" treasures.

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