This article is a study on the India's Buddhist public diplomacy in recent years, and the related issues that arose from such policy. They are firstly, why contemporary India ignored Buddhism and rarely applied it as a tool to improve the external relationship with other Asian countries in the past; Secondly, why contemporary India suddenly recognized and emphasized her connection with Buddhism within the last several years; Thirdly, why India's Buddhist public diplomacy failed during the Nalanda University Project, and analyze how the overreliance on the Dalai Lama would be a double-edged sword for India; Fourthly, to examine the effectiveness of Indian Prime Minister Narendra Modi's post-2014 Buddhist public diplomacy towards other countries; Fifthly, to analysis the innate weakness of the soft power of Indian Buddhism through perspectives such as ideology, community, knowledge, class, the relations of different religious groups etc. Conclusion is a discussion on Buddhism as a tool of public diplomacy would be trapped by the dilemma between political power and spiritual value.