Historically, the hoisting of prayer flags to guarantee good fortune was an event that occurred within the nomadic communities of Tibet, however, this ritual effort has shifted in meaning by having assumed a more religious significance. The design of the flags also endured change as a more religious significance was acquired including the appearance of mantras and images. Auspicious symbols and images of four creatures of significant symbolic value (garuda, a magical mythical bird representing wisdom; a dragon representing gentle power; the snow lion representing fearless joy; and the tiger in representation of confidence), along with the symbol of good fortune-- theWindhorse-- are placed amongst the traditional texts of prayers, invocations and mantras.

As the flags are hung, the writings and wishes that are inscribed upon the flag are said to be carried by the wind with the infinite destination of taking the blessings to all sentient beings.Designs are printed in black ink on cloth panels of blue, white, red, green and yellow, which symbolize the sky, clouds, fire, wind, and earth, respectively. Flags are often strung on a 'flag line' and flown between trees or buildings or along mountains peaks, known as "dar-ding" flags, while other flag flying methods involve a narrow flag flown from a pole, called "dar-chen" flags. Flags are used as wishes for good things for others, as well as those who display them to the wind as a practice of good karma. Thus, the rewards of this practice are enjoyed in this life as well as in others to come. As the meaning of the flags entwined more religious significance, their purpose was increasingly associated with spiritual, as opposed to material, fulfillment.

Nonetheless, flags are used as shields of protection for travelers, and other occasions, such as marriages, official functions, important calendar dates, and illnesses, invoke the use of prayer flags. Flags are generally flown on favorable days of the week, or when the stars are favorably aligned in accordance with the Tibetan almanac. The compassionate intentions of Prayer flags are altruistic in the sense that one aspires to blowing wishes of health, prosperity and relief of suffering onto all sentient beings everywhere, but the individual who ties the flags to the wind also receives a back draft of beneficial goodness.