The modern name of Sarnath is derived from the name of the Bodhisattva, Saranganatha. The celebrated Mantra, 'Buddham Sharanam Gachhami', owes its origin to Sarnath. It houses some of the significant Buddhist monuments which are the Dhamekha stupa, the Chaukhandi stupa and monasteries and temples of different schools of Buddhism from Japan, China, Thailand, Burma and others.

Sarnath holds huge significance for the historians as well the Buddhists from all over the world. Because, this is the site where, Lord Buddha founded the Sangha with his five old companions as his first disciples. It was also here that Yasa, the son of a rich merchant of Kashi, renounced his life of worldly pleasures to become Sakyamuni's disciple. Thereafter for 45 years the Lord walked the dusty plains of northern India, touching the lives of millions with his teachings. It’s believed that Lord Buddha would come back to this place to meditate during the months of the next monsoon.

There is a vast expanse of ancient ruins at Sarnath, which include the number of 20th century Buddhist temples. The main shrine (vihara), called the Mulagandakuti, is said to be located at the place where Buddha used to stay during his visits to Sarnath. The modern Buddhist temple is 110 feet high with an image of Buddha inside it. Among the stupas the Dhamekh Stupa has a particular significance at Sarnath as it was built by Emperor Ashoka to mark the spot where Buddha preached the Dharmachakrapravartana for the first time to the Sangha. The present name Dhamekh proves that it certainly has some connection with Buddha's Dharma. Here Lord Buddha first initiated the Dharmachakrapravartana (set motion of wheel of law).