Yes, a visa is mandatory to enter Bhutan. The visa application is not made through the embassy but through an authorized tour operator or their representative abroad.
The request must be submitted at least 15 days before departure. You will need to provide the following documents:
A passport valid for at least 6 months after your entry date in Bhutan
A photocopy of your passport
Two recent passport-sized photos
A payment of USD 40
The tour operator will then submit the request to the Ministry of Foreign Affairs in Thimphu, which issues a travel authorization. This authorization is sent to the immigration office, and the visa is generally processed within three days.
Note: The entry visa is separate from the Minimum Daily Package Fee required by the government.