The Pāḷi Canon is the standard collection of scriptures in the Theravada Buddhist tradition, as preserved in the Pāli language. It is the most complete extant early Buddhist canon. It derives mainly from the Tambapaṇṇiya school.

According to Buddhist tradition, during the First Buddhist Council, three months after the parinibbana of Gautama Buddha in Rajgir, Ananda recited the Sutta Pitaka, and Upali recited the Vinaya Pitaka. The Arhats present accepted the recitations, and henceforth, the teachings were preserved orally by the Sangha. The Tipitaka that was transmitted to Sri Lanka during the reign of King Asoka was initially preserved orally and later written down on palm leaves during the Fourth Buddhist Council in 29 BC, approximately 454 years after the death of Gautama Buddha. The claim that the texts were "spoken by the Buddha" is meant in this non-literal sense.

The existence of the Bhāṇaka tradition existing until later periods, along with other sources, shows that oral tradition continued to exist side by side with written scriptures for many centuries to come. Thus, the so-called writing down of the scriptures was only the beginning of a new form of tradition, and the innovation was likely opposed by the more conservative monks. As with many other innovations, it was only after some time that it was generally accepted. Therefore, it was much later that the records of this event were transformed into an account of a "council" (sangayana or sangiti) which was held under the patronage of King Vattagamani.

Textual fragments of similar teachings have been found in the agama of other major Buddhist schools in India. They were, however, written down in various Prakrits other than Pali as well as Sanskrit. Some of those were later translated into Chinese (earliest dating to the late 4th century AD). The surviving Sri Lankan version is the most complete, but was extensively redacted about 1,000 years after Buddha's death, in the 5th or 6th-century CE. The earliest textual fragments of canonical Pali were found in the Pyu city-states in Burma dating only to the mid-5th to mid-6th century CE.

The Pāli Canon falls into three general categories, called pitaka (from Pali piṭaka, meaning "basket", referring to the receptacles in which the palm-leaf manuscripts were kept). Thus, the canon is traditionally known as the Tipiṭaka ("three baskets"). The three pitakas are as follows:

The Vinaya Pitaka and the Sutta Pitaka are remarkably similar to the works of the early Buddhist schools, often termed Early Buddhist Texts. The Abhidhamma Pitaka, however, is a strictly Theravada collection and has little in common with the Abhidhamma works recognized by other Buddhist schools.

The Canon is traditionally described by the Theravada as the Word of the Buddha (buddhavacana), though this is not intended in a literal sense, since it includes teachings by disciples.

The traditional Theravādin (Mahavihārin) interpretation of the Pali Canon is given in a series of commentaries covering nearly the whole Canon, compiled by Buddhaghosa (fl. 4th–5th century AD) and later monks, mainly on the basis of earlier materials now lost. Subcommentaries were written afterward, commenting further on the Canon and its commentaries. The traditional Theravādin interpretation is summarized in Buddhaghosa's Visuddhimagga.