Karanda-vyuha is a major sutra devoted to Avalokitesvara who embodies the fundamental aspect of Buddhism: karuna (compassion), whence he is also called Mahakarunika "The Great Compassionate One".The Sanskrit text of the Karanda-vyuha is known in three versions: (i) the vulgate version in Nepalese manuscripts, (ii) the prose version in Gilgit manuscripts of the early seventh century, and (iii) the metrical version. The last version has been published in this edition from Nepalese manuscripts for the first time. It has been the basis of the Buddhist studies of B.H. Hodgson as early as 1828, and thereby it has conditioned the understanding of Buddhist thought as well as of artistic traditions.This edition of the original Sanskrit text will enable the academic world to understand the foundations of modern scientific study of the literary, philosophic and artistic perceptions of Buddhism. The Sanskrit text is preceded by an analysis of the work in the introduction. The twenty chapters of the Karanda-vyuha enable us to comprehend the immense popularity of Avalokitesvara in Mahayana Buddhism in China, Korea, Japan, Tibet and Mongolia, besides his prevalence in Southeast Asian countries like Srilanka, Indonesia, Thailand, and Cambodia in ancient times. It is a sine qua non text for Buddhist scholars as well as for historians of Asian art.