Nalanda, where ruins of the great ancient university have been excavated, is situated at a distance of 90 km from Patna, the capital of Bihar. There are many versions of what the term Nalanda means, one is that "Nalam" means Lotus and "Da" means to give, Both combined together, Nalanda means Giver of Lotus i.e. giver of knowledge. Nalanda was the largest residential centre of learning that the world had ever known. The library was located in a nine storied building. Since the time of Buddha, the bhikkhus were always encouraged to study the various arts and sciences along with Hindus in the same proximity. Learning was always performed by theoretical as well as practical approach. The monks therefore took to learning so that they might practice it and realise Dharma perfectly and thereby enrich the masses and use the knowledge for the welfare of people.
The University of Nalanda was founded in the 5th century by the Gupta emperors so as to teach the pupils of kings and other powerful people. There were thousands of students and teachers in the campus. The subjects taught at Nalanda University covered every field of learning. The courses offered at Nalanda included the study of scriptures of Mahayana and Hinayana ​Schools of Buddhism, Brahminical vedic texts, Philosophy, logic theology, grammar, astronomy, mathematics and medicine. Its importance as a monastic university continued until the end of the 12th century and in the beginning of 13th century.