Gross National Happiness (GNH), a concept first introduced by Bhutan, has gained immense traction as an alternate development paradigm to GDP toward achieving wholesome global progress. In this paper, we investigate the origins of the policy of GNH, through the theoretical lens of the punctuated equilibrium theory (PET), and when and how GNH came to the national agenda. By focusing on the year 2008, that is, when Bhutan's Government transitioned from an absolute monarchy to a democratic constitutional monarchy, this paper analyses the key events that serve as policy windows and the policy entrepreneurs responsible for agenda-setting the policy of GNH. We argue there is a major change, such as, the government changing its form from monarchy to democracy, it is a definitive benchmark as to what punctuation means. In addition to providing a definitive meaning of “punctuation” in public policy, we also identify and discuss the key methodological issues in relation PET and offer explanations through Bhutan's policy of GNH to determine policy punctuation and measuring policy change.