Once a mountain kingdom lying between the Moghul empire and the Tibetan state, Ladakh is today the third part of the political conglomerate of Kashmir. Since Indian independence, the Buddhist Ladakhis have sought greater autonomy from the Muslim-dominated Kashmiri state government, and recently the national government in Delhi has partially answered this demand. It remains to be seen whether this device will solve outstanding issues. Historical analysis shows that the Sunni members of the Muslim minority came to settle in Ladakh due to conflict-resolving treaties and invitations to take sophisticated roles in government while Shias came from Baltistan to farm. All settled residents played significant roles in the economy, and there was little strife between local Muslims and Buddhists. Communal antagonism arose in this century largely because of external influence, in particular the post-independence dominance of the pro-Muslim state government over the region. The onset of international tourism intensified competition between the communities finally leading to conflict and a politically-driven Buddhist boycott of Muslims only recently resolved by the new dispensation. But the present situation remains problematic, with the continuing right of the Kashmir government to oversee development and control funding, and new divisions emerging in the body politic which both reduce the bipolar tensions of earlier communalism and cause new questions to arise. Indian politicians have often shown skill in accommodating the variety of social identities frequently found in the many multicultural regions of India. While this history of skilled political management suggests that progress might occur without strife, the recalcitrance of the Jammu and Kashmir state government continues to block effective advance, and its violent rejection is in the cards.