The close political ties between ancient Tibet and China resulted in a steady stream of trade between the two nations. Just as the Shin Tzu was created from dogs that came from Tibet to China, the Tibetan Spaniel may have resulted from dogs going in the other direction. Early Chinese Pekingese-type dogs that were given as gifts to Tibetan officials formed the stem from which the Tibetan Spaniel developed. As the dogs that were left in China slowly evolved into our modern Pekingese, those that went to Tibet maintained the older type. An exaggerated brachycephalic dog, with the short face causing restricted nasal capacity, could not survive in the high altitude of Tibet.

The Tibetan Spaniel was fostered and loved in the monasteries of Tibet for many centuries. Monks carried the little dogs under their flowing robes in the winter, with both benefiting from the additional warmth. The spaniels reputedly turned the prayer wheels for the monks, in addition to serving as alarms. Like the Lhasas that the lamas also favored, these dogs were considered to bring good luck. The first examples of this breed were brought back to Great Britain by medical missionaries in the 1920s. The great popularity of the Pekingese seemed to have left no room for these plainer brothers. But they had established a toehold and, after WWII, the Tibetan Spaniel finally became firmly established in England, gaining distinction as both a show dog and family pet. The first specimens were brought to Canada in the mid-60s and the CKC recognized the breed in 1979. Their introduction to the USA came later and was slower; AKC finally recognized this breed in 1983.