Acarya Nagarjuna, as is widely known, founded the Madhyamika tradition of Buddhism. His
appearance was prophesied in many sutras, among them the Lankavatara, Manjusrimulakalpa,
Mahamegha, and Mahabheri.

   Four hundreds years after the nirvana of the Buddha Sakyamuni, there was living in the
southern India - in land called Vidarbha (literally, the "Land of Palms") - a prosperous
Brahman who had no sons. A sign appeared to him in a dream, indicating that he would
receive a son if he paid homage to 100 Brahmans. He did so, praying earnestly that his
deeply-held wish might be fulfilled, and 10 months later a son was born.

   The newly-born child was taken to a soothsayer, who said that although the infant did
indeed have the signs of an exceptional person, he would live only seven days. The anxious
parents asked whether something couldn't be done to avert the fate. The soothsayer replied
that if they gave food to 100 persons, the boy would live for seven days and that - if they
made offerings to 100 monks - he would live for seven years. Nothing beyond that could be
done. As the end of the seven years approached they sent the young boy, in the company
of several attendents, on an excursion - for they would not have been able to bear the sight
of their son's corpse.

   While travelling, the boy experienced a vision of the god Khasarpana (a particular
manifestation of Arya Lokesvara). Soon afterwards, the party reached the great
monastery of Nalanda. While they were standing near the dwelling of one Brahman
Saraha, the boy uttered several verses of poetry. The Brahman heard the lines and
invited the party inside. He asked them about their journey and of how they had come
to reach Nalanda. One of the attendants related the boy's history and told of his
imminent death. Saraha replied to this that, if the boy were to abandon the worldly
life by taking a vow of renunciation, there was a way to avoid the plight. The boy
agreed to do so and was first initiated into the "Mandala of Amitabha which Conquers
the Lord of Death". Afterwards he was instructed to recite dharani mantras. On the
eve of his seventh birthday in particular he recited mantras through the night and thus
overcame this encounter with the Lord of Death.

   Upon reaching the age of eight, the boy took the vow of renunciation and began studies
of the traditional sciences. He studied as well scriptural texts of each of the major schools
of Buddhist thought. Sometime afterwards he again met his parents, and later requested
the very same Brahman Saraha to instruct him in the esoteric teachings of Sri Guhya Samaja.
He was taught the appropraite tantras, together with their complete oral instruction. Next,
after submitting a formal request to the monastery's abbot, he took the full ordination of a
monk and became known as Bhiksu Srimanta.

   Being of those who are watched over by Manjusri in all their lives, the monk found
opportunities for hearing, in its entirely, the Dharma of both sutras and tantras from the
Bodhisattva teacher Ratna Mati - who was a manifestation of Manjusri in his "divine
youth" aspect. In this way Srimanta came to be a consummate master of the Dharma.

   At a later time a great famine arose, leaving the sangha of Nalanda with no means of
subsistence. The abbot, Sthavira Rahula Bhadra, appointed Bhiksu Srimanta the sangha's
steward. Although the famine lasted 12 years and greatly reduced the population of the
surrounding land of Magadha, the bhiksu was able to sustain the sangha by utilizing his
knowledge of alchemical science. He had acquired this knowledge from a Brahman
versed in alchemy, in the following way. The bhiksu first prepared two sandalwood leaves
as charms for the Siddhi of Swiftfootedness. Carring one leaf in his hand and the other
concealed in the sole of his sole, he then proceeded to the distant land where the Brahman
lived and asked to be given the instruction of the "elixir which transforms common metals
to gold".

   The Brahman thought to himself that the stranger must have had some special charm
allowing him to come to the isle. Desirous of acquiring it, he said to the bhiksu:
"Knowledge must be exchanged for knowledge, or compensated in gold." "Well, then,"
replied Bhiksu Srimanta, "we must exchange knowledge," and he gave the Brahman
the charm he had been carrying his hand. Thinking that the visitor could no longer leave
the island, the Brahman gave him the instruction. Using the leaf he had kept in the sole
of his shoe, the bhiksu then returned to Magadha. He was thus able to provide Nalanda's
sangha amply with all their essential needs, through transmutting great quantities of iron
to gold with the alchemical elixir.

   Some time after this, Bhiksu Srimanta served as the abbot of Nalanda. He paid great
tribute to those members of the sangha who observed the Three Trainings properly
and expelled those bhiksus and sramanas who were morally corrupt. He is reputed to
have banised as many as 8,000 monks.

   It was during this period as well that one Bhiksu Samkara composed a scripture
entitled The Ornament of Knowledge. It was written in 12,000 verses and represented
an attempt to discredit the Mahayana doctrine. By means of logic, the Bhiksu Srimanta
was able to refuge the argument completely. He also disproved many other scriptures
denying the validity of the Mahayana. On one occassion, in a place called Jatasamghata,
he defeated 500 non-Buddhist scholars in debate and converted them to the Buddhist
religion by overcoming their false views.

   During that time when the Acarya was teaching the Dharma of the Tripitaka widely
to many followers, two youths who were actually emanations of nagas came to him
seeking the Dharma. With their presence the entire area became filled with the fragrance
of sandalwood. Upon their departure it disappeared and when they returned the
fragrance reappeared as well. The Acarya asked them the reason for this, and the
youths replied that they were sons of the naga king Taksala. They had anointed
themselves with essence of sandalwood as immunization against human impurities.

   The Acarya then asked them to give him some of the sandalwood for an image of Tara
and to assist him in constructing temples as well. The youths answered that they would
have to ask their father, and then left. They returned after two days to tell the Acarya
that only if he himself came to the Land of the Nagas could they do as he bade. Aware
of the benefit to all beings that would result from his going, the Acarya journeyed to the
Land of the Nagas, where King Taksala and other righteous-minded nagas presented
him with innumerable offerings. The mahatma preached the Dharma to the nagas in
compliance with their every supplication, bringing them so much satisfaction that they
entreated him to remain among them permanently. He answered: "Because I have come
here for the purpose of securing the sutra of Prajnaparamita in 100,000 verses and
'naga clay' - which is needed for the construction of temples and stupas - I have no
opportunity now to stay. I shall perhaps be able to return in the future."

   When he had acquired the expanded version of the Mother of the Jinas, several shorter
texts of the Prajnaparamita, and great quantities of naga clay, the Acarya prepared to return
to our world of the Jambudvipa. It is said that in order to ensure the Acarya's return to their
land, the nagas kept from him a small portion at the end of the 100,000 verses. The missing
portion - the last two chapters of the unabridged Sutra on the Prajnaparamita - was therefore
replaced by the corresponding chapters of the Prajnaparamita Sutra in 8,000 verses. This
is why the final two chapters of each Sutra are identical.

   After securing the Prajnaparamita sutras, the Acarya greatly advanced the influence of
the Mahayana tradition. When he preached the Dharma in the monastery park, the
nagas performed acts of reverence such as six of the serpents forming a parasol to shade
him from the sun. Having thus become the Lord of the Nagas, the Acarya was named
"The Naga". Because his skill at spreading the Mahayana Dharma resembled the shooting
speed and mastery of the famed archer Arjuna, he became known as well as "The Arjuna".
It is otherwise explained that he was called "Nagarjuna" because, by practising the sadhanas
of the goddess Kurukulla, he gained authority over such nagas as King Taksaka and others.

   Nagarjuna later travelled to the area of Pundravardhana where, utilizing the practice of
alchemy, he performed many acts of great generosity. In particular, he bestowed great
quantities of gold upon an elderly Brahman couple and thus instilled themwith great faith.
The Brahman elder served Nagarjuna and listened to the Dharma from him, and after his
death he was reborn as the Master Bodhinaga.

   Nagarjuna also constructed many temples. Once, when he was preparing to transform
a large, bell-shaped boulder into gold, an emanation of Tara with the form of an old
woman appeared and said to him: "Instead of doing this, you should go to the Mountain
of Splendour and practise the Dharma." Later he did go there to practice the sadhanas
of Tara.

   On another occassion, w