Nagarjunakonda, about 150 km south-east of Hydrebad on the Krishna River, was one of the largest and most important Buddhist centres in southern India from the 2nd century BC until 3rd century AD. Known in those days as Vijaynagar, Nagarjunakonda takes its present name from Nagarjuna, one of the most revered Buddhist monks, who governed the sangha for nearly 60 years around the turn of the 2nd century AD. The Madhyamika school he founded attracted students from as far afield as Sri Lanka and China.

The site was discovered in 1926. Subsequent excavations, particularly in the '50s and '60s, have unearthed the remains of stupas, viharas, chaityas and mandapams, as well as some outstanding examples of white marble carvings and sculptures depicting the life of the Buddha. These finds were taken to a purpose-built museum on an island which was created following the decision to flood this entire area to build the enormous Nagarjuna Sagar Dam in 1960.