Among Buddhists, death is regarded as one of the occasions of major religious significance, both for the deceased and for the survivors. For the deceased, it marks the moment when the transition begins to a new mode of existence within the round of rebirths (see Bhavacakra). When death occurs, all the karmic forces that the dead person accumulated during the course of their lifetime become activated and determine the next rebirth. For the living, death is a powerful reminder of the Buddha's teaching on impermanence; it also provides an opportunity to assist the deceased person as they transition to a new existence. There are several academic reviews of this subject. In Buddhism, death marks the transition from this life to the next for the deceased.

For the non-Arhat, death is a time of transitioning to another rebirth; thus, the living participate in acts that transfer merit to the departed, either providing for a more auspicious rebirth or for the relief of suffering in the departed's new existence. For the living, ceremonies marking another's death are a reminder of life's impermanence, a fundamental aspect of the Buddha's teaching. Death rites are generally the only life cycle ritual that Theravāda Buddhist monks get involved in and are therefore of great importance.

A distinctive ritual unique to funeral rites is the offering of cloth to monks. This is known as paṃsukūla in Pali, which means "forsaken robe". This symbolises the discarded rags and body shrouds that monks used for their robes during the time of the Buddha.

In China, numerous instructive and merit-transferring ceremonies are held during the forty-nine days between death and rebirth. It is widely held that, without embarking on the path of spiritual cultivation and attaining the Four Higher Realms, the soul of the deceased will be transmigrated within the Six Realms of Existence. Helping the deceased to ascend to a higher realm (Chaodu, 超渡) becomes an important issue for family members or friends of the deceased within forty-nine days of their death. People often resort to methods such as chanting or recitation of Buddhist scriptures to help the deceased.

For most Chinese funerals, if a Buddhist ceremony is chosen, the practice of recitation of the Amitabha Sutra and the name of Amitabha is an important part of death rites. Many other scriptures or a combination of classic Buddhist scriptures, such as the Great Compassion Mantra, the Heart Sutra, the Amitabha Pure Land Rebirth Mantra and Sapta Atitabuddha Karasaniya Dharani (or Qi Fo Mie Zui Zhen Yan 七佛滅罪真言), are also commonly used. Along with cultural practices, such as the burning of joss paper (which is discouraged by most practicing Buddhists), practitioners are often cremated.

"Exposure of the Corpse" (Lushizang, 露屍葬) is the practice of placing the body of the deceased in an open area instead of using coffins or sarcophagi. In the Indian tradition, the practice of exposing the corpse included putting the body in the forest or sinking it underwater. Originating from India, medieval Chinese monks also practiced exposing the corpse in the woods but so far no textual evidence supports the practice of water burial. In addition, cave burial (Shishi yiku 石室瘞窟) was also a type of Lushizang in medieval China.

The point of exposing the corpse was to offer the body to hungry birds and beasts. After that, the remains were collected. There were three ways to dispose of the remains:

Starting from the third century AD, Chinese monks used caves as the resting place for the deceased. This funeral practice (石室瘞窟) may have been influenced by Central Asian practices. Compared to forest burial, cave burial was less direct than exposure.