IRRI's involvement with national agricultural research and extension systems (NARES) varied, depending on the country's specific needs and level of development. For the last 16 years, IRRI has been proud of its fruitful partnership with Bhutan, which has led to the development of a funtional research and development system in Bhutan. Our collaborative partnership is an excellent example of building a small but effective research system. Bhutan is now widely considered to be a model research system for a small country.  It is worth documenting the history and the many achievements associated with the development of the Bhutan national program. Others can appreciate what has been achieved through partnership with the other stakeholders, particularly the main donors, the International Development Research Centre, and lately, the Swiss Agency for Development and Cooperation. Through effective collaboration, a strong foundation has been laid for developing a national research program on rice, oilseeds, wheat, and vegetables. In addition, a small farm research station (CARD - Wangduephodrang) has been transformed into an effective national agricultural research center that serves not only the wetland production system but also the national research and development program for field crops. Project efforts have contributed positively to enhancing research-extension linkages and have generated farm-level impact through the adoption of new varieties and production technologies in many parts of the country.