Based on climatic data from 18 stations on the southern slopes of the eastern Himalayas in Bhutan for the period from 1996 to 2009, this paper investigates monthly characteristics of the near-surface air temperature lapse rate (TLR). The station elevations used in this study range from 300 to 2760 m a. s. l. TLRs were evaluated using a linear regression model. The monthly values of maximum TLRs were always smaller than those of the minimum TLRs, which is in contrast to results from the surrounding mountainous regions. In this study, annual patterns of TLRs were somewhat consistent, particularly in the summer; during the other seasons, patterns contrasted to results from the southeastern Tibetan Plateau (China) and were almost comparable to results from Nepal. The shallowest observed values for TLRs in summer are due to intense latent heating at the higher elevation, associated with water vapor condensation from moist convection and evapotranspiration, and decreasing sensible heating at lower elevation, due to heavier rainfall, cloud, and forest cover. When compared to summer, the steeper TLRs in the non-monsoon season are due to sensible heating at the lower elevations, corresponding to dry and clear weather seasons, as well as increasing cooling at higher elevations, particularly in winter due to snow and cloud cover. Owing to lower albedo and higher aerodynamic roughness of forested areas, the TLRs were considerably reduced in daytime because of the dissipation of sensible heat to the atmospheric boundary layer. The distinct variation in diurnal TLR range is due to the diurnal variation in net radiation associated with reduced turbulent heating in the day and increased turbulent heating in the night, in addition to the effect of moisture and cloud cover. The shallower values of TLRs in this study when compared with the surrounding mountainous regions are due to high humidity, as well as the differing elevations and local climates.