Buddhism was on the decline during Harsha`s period. Besides being divided into two main sects as for example Hinayanaism and Mahayanasim. There was as many as 18 different sects among the Buddhists. Mahayanism was more prominent. During his visit Hiuen Tsang saw as many as 5,000 monasteries accommodation. The most important Buddhist monastery was that of Nalanda.
The different sects of Buddhism differed widely and claimed intellectual superiority over one another. Mahayan form of Buddhism encouraged the worship of the Buddha and the Bodhisattvas regarding difference between Hinayanism and Mahayanism. Another Chinese traveller Itsing has written that those who worshipped Bodhisatvas and studied mahayan sutras were called the Mahayanists and those who did not do so were called Hinayanists. According to Hiuen Tsang, the practices of standing fixedly, wandering hither-thither and peaceful meditation of the Hinayan sect were different from the practices of meditation and worship of the Mahayan sect. During Harsha`s period mahayan sect of Buddhism, was more popular, in this respect Dr. Mookerji writes, "Mahayan was more prominent than Hinayan, but followers of both schools were found by the Chinese pilgrim to be living together in the same, monastery at different centres. Together with their `deva-temples` shrines pf Hinduism, Buddhism was represented in as many as 18 different sects besides its broad division into Hinayan and Mahayana." Due to support and encouragement of Harsha, Buddhism had become popular in Kannauj. Kapisha was considered as the prominent centre of Buddhism. At many places both Hinduism and Buddhism were prevalent side by side.
One of the reasons for the decline of Buddhism was the life of luxury led by the Buddhists monks. It has been described in `Mattvilasa`. Moreover, Buddhism and Hinduism had come to close that people did not find any difference between the two. In the course of time Buddhism was regarded as a branch of Hinduism.
