The discovery of autochthonous documents in the region of Khotan and the Caves of the Thousand Buddhas, on Chinese high-quality paper and by Western and Chinese discovery team at the end of 19th century and early 20th, has inaugurated a new chapter in the history of Khotan. The study of these documents which were written in a less-known Iranian language and contained Sanskrit and Prakrit terminology of literature, science, administration, politics, medicine etc; has shed light to the historical and cultural background of Khotan. The Chinese pilgrims in the 5th century have mentioned rituals that are Indian and Buddhist. However ancient Iranian beliefs were popular before the start of Buddhism and especially Mahāyāna school. Khotanese literature demonstrates traces of this progression.